Why ESG Investors Are Happy to Settle for Lower Returns – Knowledge@Wharton

I recently flagged a post by Aswath Damodaran on his “Musings on Markets” blog which offered a sceptical perspective on the claims being made in favour of ESG based investing.

The Knowledge at Wharton website has a summary of some research that offers another perspective on ESG and Socially Responsible investment approaches. The research is described as providing “… a theoretical framework for how ESG (environmental, social and governance) investing affects stock prices and corporate behavior.”

The research paper is behind a paywall but you can find the Knowledge at Wharton summary here – knowledge.wharton.upenn.edu/article/esg-investors-happy-settle-lower-returns/

Tony – From the Outside

Author: From the Outside

After working in the Australian banking system for close to four decades, I am taking some time out to write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk.

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