Volume 16, No. 1, 2018 Julia L. Pollard, Matthew W. Sherwood and Ryan Grad Klobus This seminal research provides statistically significant evidence for the empirical identification of Environmental, Social and Governance (ESG) as a factor of risk premium when integrated within an equity portfolio. This study purposes to establish that the conceptual development, adoption and… Read more
2018
Environmental, Social, and Governance Criteria: Why Investors Should Care
Ravi Jagannathan, Ashwin Ravikumar and Marco Sammon Volume 16, No. 1, 2018 We argue that even money managers who care only about risks and returns are likely to benefit from incorporating Environmental, Social, and Governance (ESG) criteria into their investment process. ESG-related issues can cause sudden regulatory changes and shifts in consumer tastes, resulting in… Read more
Assessing Risk Through Environmental, Social and Governance Exposures
Vol. 16, No 1, 2018 Jeff Dunn, Shaun Fitzgibbons and Lukasz Pomorski We discuss risk and return implications of incorporating environmental, social and governance (ESG) considerations in an investment strategy and argue that ESG exposures may be informative about the risks of individual firms. We show empirically that stocks with worst ESG exposures have volatility… Read more