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

ESG Issues and Investment Practice

A recent survey sheds light on investor attitudes about ESG issues. Because ESG considerations continue to gain acceptance in investment management, CFA Institute conducted a survey from 26 May to 5 June 2015 to learn more about member perceptions and practices regarding ESG issues. Out of the 44,131 CFA Institute members working as portfolio managers and research analysts [...]

By |2016-11-24T12:14:08+00:00June 27th, 2016|Financial, Firm Value, Governance, Investors, Risk|0 Comments

Hedging Climate Risk

We present a simple dynamic investment strategy that allows long-term passive investors to hedge climate risk without sacrificing financial returns. We illustrate how the tracking error can be virtually eliminated even for a low-carbon index with 50% less carbon footprint than its benchmark. By investing in such a decarbonized index, investors in effect are holding [...]

By |2016-11-24T12:14:08+00:00June 27th, 2016|Environmental, Financial, Firm Value, Investors|0 Comments

Why Sin Stocks Have Abnormal Returns?

An Experimental Investigation on the Effect of Corporate Social Responsibility on Investor's Investment Behaviour and Firm's Choice of Production Methods In classical finance theory, social preference is assumed to play no role in investor’s portfolio choice, as the optimal portfolio is formed by considering return and risk of the stocks. While it has been known [...]

By |2016-11-24T12:14:08+00:00June 23rd, 2016|CSR, Financial, Firm Value, Investors, Risk|0 Comments

Stock Synchronicity, Stock Price Crash Risk, and Corporate Social Responsibility

This paper investigates the relationship between corporate social responsibility (CSR) and the distribution of stock returns for an international sample. While stock price synchronicity increases with high corporate social performance in Europe, Japan, and the United States, CSR has a consistent significant mitigating effect on crash risk only in the U.S. sample and to a [...]

By |2016-11-24T12:14:08+00:00June 23rd, 2016|CSR, Financial, Firm Value, Investors, Risk|0 Comments

Carrots & Sticks 2016: Non-financial reporting regulation surges worldwide

This report assesses developments in sustainability reporting regulation and policy across 71 countries and identifies a worldwide surge in the number of reporting instruments in place. The report is the fourth in the series since 2006 and is produced jointly by KPMG International, GRI, United Nations Environment Programme (UNEP) and The Centre for Corporate Governance [...]

By |2016-11-24T12:14:08+00:00June 13th, 2016|CSR, Governments, Indicators, Investors|0 Comments

Investors Care More About Sustainability than Many Executives Believe

Many executives embrace the conventional wisdom that mainstream investors care little about an organization’s performance on environmental, social, and governance (ESG) metrics. Few companies make it a priority to communicate their sustainability performance to investors, or even develop a robust story about their sustainability performance. Why should they? Investors won’t shift their investments, the thinking [...]

By |2016-06-30T11:49:17+00:00June 13th, 2016|CSR, Firm Value, Indicators, Investors, Risk|0 Comments

The 2016 SustainAbility Leaders – A GlobeScan / SustainAbility Survey

For SustainAbility and GlobeScan’s annual Sustainability Leaders Survey, we asked over 900 expert stakeholders representing business, government, NGOs and academia across 84 countries to evaluate the progress that institutions have made since the 1992 Earth Summit and reflect on their expectations for the next 20 years. We also analyze expert views on which companies are [...]

By |2016-11-24T12:14:08+00:00June 13th, 2016|CSR, Integrated Reporting, SDG|0 Comments

OECD: Scaling up Private Investment in Low-carbon, Climate-resilient Infrastructure

This report provides the first comprehensive study of publically capitalised green investment banks (GIBs), analysing the rationales, mandates and financing activities of this relatively new category of public financial institution that aims to accelerate the transition to a low-carbon economy. See the OECD report here

By |2016-06-30T11:49:17+00:00June 13th, 2016|CSR, Environmental, Firm Value, Indicators, Investors, Risk|0 Comments

Value Relevance of Environmental, Social, and Governance Disclosure

This paper investigates the impact of Environmental, Social, and Governance (ESG) disclosure by companies around the world on market value. Using a large sample of non-financial companies listed in 38 countries during the period 2008-2012, we test for value relevance by employing the modified version of the Ohlson (1995) model developed by Collins, Maydew, and [...]

By |2016-06-30T11:49:17+00:00June 13th, 2016|CSR, Firm Value, Indicators, Investors|0 Comments

A Panel Study of the Relationship Between Corporate Social Inconsistency and Risk

This panel study of 863 firms offers a theoretical exploration of the proposed curvilinear relationship between firms’ (in)consistency in environmental, social, and governance practices and corporate risk. We hypothesize a U-shaped relationship between corporate risk and corporate social inconsistency (CSI), defined as the internal variability of a firm's performance with respect to different environmental, social, [...]

By |2016-06-30T11:49:17+00:00June 13th, 2016|CSR, Firm Value, Risk|0 Comments