Jeroen Dermal, Nadja Gunster, Rob Bauer, Kees Koedijk
This study debunks the myth that socially responsible investment (SRI) leads to lower performance rates by proving the opposite. The authors examine the eco-efficiency premium puzzle and "whether it withstands the inclusion of transaction costs scenarios, and evaluate how excess returns can be earned in a practical setting via a best-in-class stock selection strategy." Their results propose the rising benefits of SRI may be very consequential.
Sustainable Investing: Establishing Long-Term Value and Performance
DB Climate Change Advisors
This report summarizes the history of Sustainable Investment (SI) and traces the development of Corporate Social Responsibility (CSR) and Integrated Reporting (IR). The authors also studied how SI factors corresponded to “superior risk adjusted returns in terms of (lower) cost of capital and (higher) financial performance at a security/ market index and fund level.” They find a great positive correlation with CSR and ESG in most of the securities studies.