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  1. Mind the ESG gaps
    transmission mechanisms and the governance of and by sustainable finance
    Published: [2023]
    Publisher:  DIIS - Danish Institute for International Studies, [Copenhagen]

    Environmental, social and governance (ESG) funds are among the fastest growing investment styles. ESG funds can be used either to only mitigate risk (input ESG) or to go beyond that to create impact (output ESG). We argue that the governance by ESG... more

    Access:
    Verlag (kostenfrei)
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 130
    No inter-library loan

     

    Environmental, social and governance (ESG) funds are among the fastest growing investment styles. ESG funds can be used either to only mitigate risk (input ESG) or to go beyond that to create impact (output ESG). We argue that the governance by ESG is characterised by three potential transmission mechanisms: ratings, shareholder engagement and capital allocation. These mechanisms can create sustainability impact or constitute 'ESG gaps', if they remain ineffective or unutilised. Based on financial data, an investigation of ESG methodologies and expert interviews, we provide a novel market analysis of the ESG industry, focusing primarily on the capital allocation mechanism. Our findings highlight that while ESG indices could have an impact, most currently do not meaningfully facilitate sustainability - we call this the 'ESG capital allocation gap'. This has important implications because without effective transmission mechanisms, ESG funds cannot have sustainability impact on companies and the real economy.

     

    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9788772361093
    Other identifier:
    hdl: 10419/296936
    Series: DIIS working paper ; 2023, 04
    Subjects: Capital allocation; ESG; impact; sustainable finance; transmission mechanisms
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen
  2. Mind the ESG gaps
    transmission mechanisms and the governance of and by sustainable finance
    Published: 2023
    Publisher:  DIIS - Danish Institute for International Studies, [Copenhagen]

    Environmental, social and governance (ESG) funds are among the fastest growing investment styles. ESG funds can be used either to only mitigate risk (input ESG) or to go beyond that to create impact (output ESG). We argue that the governance by ESG... more

    Access:
    Verlag (kostenfrei)
    Technische Informationsbibliothek (TIB) / Leibniz-Informationszentrum Technik und Naturwissenschaften und Universitätsbibliothek
    No inter-library loan

     

    Environmental, social and governance (ESG) funds are among the fastest growing investment styles. ESG funds can be used either to only mitigate risk (input ESG) or to go beyond that to create impact (output ESG). We argue that the governance by ESG is characterised by three potential transmission mechanisms: ratings, shareholder engagement and capital allocation. These mechanisms can create sustainability impact or constitute 'ESG gaps', if they remain ineffective or unutilised. Based on financial data, an investigation of ESG methodologies and expert interviews, we provide a novel market analysis of the ESG industry, focusing primarily on the capital allocation mechanism. Our findings highlight that while ESG indices could have an impact, most currently do not meaningfully facilitate sustainability - we call this the 'ESG capital allocation gap'. This has important implications because without effective transmission mechanisms, ESG funds cannot have sustainability impact on companies and the real economy

     

    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Ebook
    Format: Online
    ISBN: 9788772361093
    Series: DIIS working paper ; 2023, 04
    Subjects: Capital allocation; ESG; impact; sustainable finance; transmission mechanisms
    Scope: 1 Online-Ressource (circa 39 Seiten), Illustrationen