Governmental and scientific news and insights on investor oriented environmental, social, and governance (ESG) data.

Bank of America: ESG is the best signal we have found for future risk

Environmental, Social & Governance (ESG) factors are too critical to ignore, in our view. In our earlier report ESG: good companies can make good stocks, we found that ESG-based investing would have offered long-term equity investors substantial benefits in mitigating price risk, earnings risk and even existential risk for US stocks – ESG would have [...]

By |2017-07-18T09:25:25+00:00July 18th, 2017|ESG, Firm Value, Investors, Risk, Uncategorized|0 Comments

ESG Risks and the Cross-Section of Stock Returns

This paper studies the effect of ESG risks on shareholder value, using data from RepRisk to measure the risk exposure of a firm to ESG incidents. A firm has high ESG risks when it had many ESG incidents in the past. This paper shows that a portfolio of these firms generates negative stock returns over [...]

By |2017-07-18T09:22:48+00:00July 18th, 2017|ESG, Firm Value, Risk|0 Comments

ESG for All? The Impact of ESG Screening on Return, Risk and Diversification

A large body of research has documented a positive relationship between different measures of sustainability — such as indicators of employee satisfaction and effective corporate governance — and corporate financial performance. Nevertheless, many investors still struggle to quantify the value of ESG to investment performance. To address this issue, the authors tested the effects of [...]

By |2016-11-24T12:14:08+00:00October 12th, 2016|Financial, Firm Value, Investors, Risk|0 Comments