Repository logo
 

ESG investment performance evaluation: an integrated approach

Accepted version
Peer-reviewed

Type

Article

Change log

Authors

Horan, S 
Emery, C 
Blay, K 

Abstract

ESG investment strategies have experienced a massive inflow of capital over the past decade despite investors having few methods to evaluate their performance and communicate their ESG values, objectives, and references to investment managers. This paper develops a three dimensional performance evaluation metric that incorporates return, risk, and ESG outcomes. It is predicated on an investor’s willingness to trade off financial gain for non-financial gain and can accommodate any traditional risk-adjusted performance measure. Without such frameworks, investors can neither determine whether outcomes match their expectations nor compare performance across managers and allocate capital accordingly.

Description

Keywords

ESG, ESG investing, values investing, responsibility, responsible investing, performance, evaluation, performance measurement, portfolio management

Journal Title

Journal of Investment Management

Conference Name

Journal ISSN

1545-9144
1545-9152

Volume Title

Publisher

Publisher DOI