Environmental, Social, and Governance Criteria: Why Investors are Paying Attention / Ravi Jagannathan, Ashwin Ravikumar, Marco Sammon.

Format:

Book

Author/Creator:

Jagannathan, Ravi.

Contributor:

National Bureau of Economic Research.

Ravikumar, Ashwin.

Sammon, Marco.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24063.

NBER working paper series no. w24063

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Environmental, Social, and Governance Criteria

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

We find that money managers could reduce portfolio risk by 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 large asset price swings which leave investors limited time to react. By incorporating ESG criteria in their investment strategy, money managers can tilt their holdings towards firms which are well prepared to deal with these changes, thereby managing exposure to these rare but potentially large risks.

Notes:

Print version record

November 2017.