Tag Archives: ESG

The IRA’s Greenhouse Gas Reduction Fund: A Discussion of Impacts & Recommendations for Implementation 

By | May 19, 2023

In August 2022, President Biden signed the Inflation Reduction Act (IRA), a landmark piece of legislation designed primarily to help the United States decarbonize while reviving domestic manufacturing. One of the most important novel programs in the IRA is the Greenhouse Gas Reduction Fund, or GGRF. The GGRF is a $27 billion pool of grant… Read More »

Where the Wild Things Are? The Governance of Private Companies 

By | April 20, 2023

Privately owned companies far outnumber public ones. They constitute the lion’s share of the companies in our world and, accordingly, have a comprehensive impact on commercial reality. There are over 25,000,000 private companies in the U.S. and around 4,000 public ones. Furthermore, while the number of public corporations is lower than its peak in the… Read More »

Climate Disclosure Line-Drawing – and Why to Take Both Sides in the ESG Debate Seriously 

By | April 20, 2023

Over the past year, three converging trends have put environmental, social, and governance (“ESG”) topics at the center of yet another polarizing national debate.   ESG Mainstreaming. The first is that investments that integrate ESG factors in some way have gone mainstream over the past decade.  ESG is no longer limited to “sustainable, responsible, and impact”… Read More »

When State Tax Incentives Clash with ESG 

By | April 18, 2023

Companies and investors have increasingly focused on embedding Environmental, Social, and Governance (ESG) considerations into their strategies. While the term ESG has no official definition and defies easy description, we define companies with an ESG strategy as those making a good faith commitment to managing ESG-related risks to enhance long-term shareholder value. To use the… Read More »

Mandatory ESG Reporting and Corporate Performance  

By | April 10, 2023

The debate on whether environmental, social and governance (ESG) reporting should be mandatory is ongoing and of growing importance for regulators. Different institutions are working on new mandatory ESG disclosures. For example, the European Union passed the Corporate Sustainability Reporting Directive (CSRD) in 2014 and is now preparing to adopt the European Sustainability Reporting Standards… Read More »

Quantifying the Returns of ESG Investing: An Empirical Analysis with Six ESG Metrics

By | April 7, 2023

Environmental, Social, and Governance (ESG) investing has been gaining momentum in recent years as investors increasingly recognize the importance of incorporating ESG factors into their investment decisions. ESG investors rely on third party rating agencies that specialize in measuring the ESG performance of companies. There are many ESG rating agencies in the market and some… Read More »

Sustainability Ratings and Benchmarks: How ‘New’ Are They? 

By | March 28, 2023

Sustainable finance is a burgeoning sector, and the jury is still out on whether this is just a bubble, inflated by greenwashing practices, or a genuine step towards better ESG (environmental, social, and governance) conditions – or a combination of the two. Whatever the answer, sustainable finance is likely to remain high on the agenda… Read More »

Tug of War in Corporate Environmental Lobbying 

By | March 24, 2023

Do firms engage in political competition in environmental lobbying when they have opposing environmental stances? If yes, is there any deadweight loss of corporate value and social resources due to such political competition? Our recent working paper theoretically and empirically explores how firms can compete to capture an environmental policy through lobbying. Corporate lobbying is… Read More »

Green Bond Effects on the CDS Market 

By | March 8, 2023

Since 2007, a novel debt type, green bonds, has emerged as a popular instrument to raise and direct capital toward projects that curb climate change risk. Corporations, government agencies, supranational entities, and municipalities issue these bonds mainly in the US, China, and Europe. Annual green bond issuance has experienced exponential growth from $37.1 in 2014… Read More »

Does Socially Responsible Investing Change Firm Behavior? 

By | February 22, 2023

Over the last decade, there has been a significant increase in the popularity of socially responsible investment (SRI) funds. These funds claim to incorporate environmental and social (E&S) risks into the selection of their portfolio firms and the majority of these funds also claim that they engage with their portfolio firms to improve the real-world… Read More »