Sustainable Finance Research

Oxford Martin School: Empirically Grounded Technology Forecasts and the Energy Transition (September 2022) (Finding that transitioning to a decarbonized energy system by 2050 could save $12 trillion)

SEC: Proposed Rule: The Enhancement and Standardization of Climate-Related Disclosures for Investors (May 2022) (Stating that increased ESG disclosure via standardized means will decrease information asymmetry among investors, thus increasing collective investor confidence in the market. This increase in investor confidence decreases risk premiums by accounting for it, thus reducing the overall cost of capital and increasing overall market liquidity.)

Deloitte Center for Sustainable Progress: Global Turning Point Report (May 2022) (finding that climate change could cost the global economy nearly $180 trillion dollars)

Lazard: Climate Center Presentation (December 2021) (finding that a 10% decrease in a large U.S. energy company’s emissions corresponded with a 3.9% increase in its price-to-earnings ratio)

The Review of Financial Studies: Climate Finance (March 2020) (Finding that firms with a greater exposure to climate risk have a higher cost of capital, as measured by stock returns — with the effect being more pronounced for firms in industries that are more sensitive to climate risk, such as energy, utilities, and transportation)

The Review of Financial Studies: Attention to Global Warming (March 2020) (finding that investor attention to climate change has increased significantly over time and that firms with high exposure to climate risks may face lower stock returns in the presence of high investor attention to climate change – especially for companies with high carbon intensity, high fossil fuel reserves, and low R&D expenditure on clean energy technologies)

Indeed & Glassdoor’s Hiring and Workplace Trends Report 2023 (finding that nearly three quarters of workers aged 18-34 would consider turning down a job or leaving a company where their manager did not support DEI initiatives)

As You Sow: Workplace Diversity and Financial Performance (November 2022) (finding a positive association between diverse management and financial performance)

Morgan Stanley: Does Ethnic Diversity on Corporate Boards Affect Stock Prices (January 2022) (finding that “racial and ethnic diversity on corporate boards of large-caps had a significant positive impact on stock price”)

Citi: Closing the Racial Inequality Gaps - The Economic Cost of Black Inequality in the U.S. (September 2020) (Finding that discrimination against Black Americans cost the U.S. economy $16 trillion over the past 20 years)

McKinsey & Company: Diversity Wins - How Inclusion Matters (May 2020) (study of 1,000 public companies finding that firms in the top quartile for racial and ethnic diversity were 36% more likely to have financial returns over their national industry means)

Wall Street Journal: The Business Case for More Diversity (October 2019) (S&P 500 survey finding that the 20 most diverse companies have better operating results and shareholder returns than the least diverse firms).

Boston Consulting Group: How Diverse Leadership Teams Boost Innovation (January 2018) (finding that that diverse leadership teams lead to innovation and improved financial performance — with companies with above average management diversity reporting innovation-related revenue 19% higher and overall EBITA 9% higher than companies with below average management diversity)

The Journal of Corporate Governance: Exploring the Impact of Corporate Governance Measures on Firm Performance in Chinese Listed Firms (November 2021) (Study of Chinese listed companies showing that good corporate governance can improve firm performance and mitigate corporate distortions caused by managerial overconfidence)

Harvard: 2021 Proxy Season Review: Shareholder Proposals on Environmental Matters (August 2021) (finding that shareholder proposals related to environmental and climate matters have increased YoY, and shareholder support for those initiatives have also increased YoY)

Bain and EcoVadis: Do ESG Efforts Create Value? (April 2023) (Research of 100,000 mostly private companies finding positive ESG outcomes to be a trait of successful companies and that ESG activities are positively associated with revenue growth and EBITDA margins)

MSCI Study on ESG Impact on Financial Returns (January 2023) (revealing the potential for ESG factors to contribute positively to financial returns, despite short-term variations in factor performance)

Penn State & Rock Solutions: Navigating ESG in the New Congress (December 2022) (finding that American voters reject political attempts to curb ESG)

Bloomberg: Most in Finance Support ESG (December 2022) (survey finds that more than 60% of Bloomberg Terminal users “expect ESG to be a standard part of, or increasingly critical, to running a business”

Moore Global & Centre for Economics and Business Research (September 2022) (finding a potential $4 trillion ESG-related revenue uplift and increased profits by ESG adopters)

Gas, Guns, and Governments: Financial Costs of Anti-ESG Policies (May 2022) Discussing how Texas’s bans of certain municipal bond underwriters because of their perceived ESG policies will cost municipalities between $300-$500 million in additional interest)

NYU Stern Sustainable Market Share Index™ 2021 Report (April 2022) (finding that sustainability-marketed products hold 17% market share and grow 2.7x faster than conventional products and enjoy price premiums despite pandemic)

Journal of Real Estate Research: ESG Disclosure, REIT Debt Financing, and Firm Value (August 2021) (describing how ESG disclosure enhances Real Estate Investment Trust (REIT) firm value and lowers cost of debt financing)

NYU Stern & Rockefeller Asset Management: ESG and Financial Performance (February 2021) (finding that nearly 60% of more than 1000 corporate studies found a positive relationship between ESG and financial performance)

Marsh & McLennan: ESG as a Workforce Strategy (2020) (discussing how ESG can help engage current employees and attract talent)

McKinsey Quarterly: Five Ways that ESG Creates Value (November 2019) (discussing how ESG can: (1) contribute to top-line growth, (2) reduce costs, (3) decrease regulatory and legal risks, (4) increase productivity and (5) enhance investment returns)

The Journal of Finance: Do Investors Value Sustainability? A Natural Experiment (August 2019) (finding that investors value sustainability, with better sustainability rankings having a positive and significant impact on fund flows – especially in connection with equity funds and funds with higher expense ratios)