A shorter version of this piece was originally posted on LinkedIn — this is the fuller version, with more detail on each valuation channel, the study’s findings, and the practical implications for investors and CFOs. Climate risk has moved from a sustainability footnote to a core driver of enterprise value. For years, it lived inContinue reading “Climate risk is ultimately a valuation problem”
Tag Archives: #esginvesting
ESG Investing and AI
Artificial Intelligence (AI), machine learning, and natural language processing have taken a firm foothold, and companies are exploring opportunities to leverage their power. AI and related tools will help investors navigate companies’ financial performance prospects and environmental, social and governance (ESG) factors. Let’s look at some of the ways in which AI can support ESGContinue reading “ESG Investing and AI”
SEBI moves ahead on ESG
The Securities and Exchange Board of India (SEBI), recently, approved the regulatory framework for ESG (Environmental, Social and Governance) disclosures, ratings and investing. Disclosures SEBI has introduced BRSR Core that is applicable to top 150 companies by market capitalisation. It has reduced the number of key performance indicators across the value chain to report onContinue reading “SEBI moves ahead on ESG”
Market Reaction to Corporate ESG News
A recent paper by George Serafeim and Aaron Yoon explores the market reaction to different ESG news. They analyze the market reaction to ESG news for 3,109 companies. They find that prices react only to financially material ESG news, and the reaction is larger for news that is positive, receives more news coverage, and isContinue reading “Market Reaction to Corporate ESG News”
ESG Investing and the Long-Short Strategy
ESG investing has been growing exponentially. According to Bloomberg, ESG assets are likely to rise to $53trillion by 2025, comprising a third of the global AUM. Most investment strategies are either exclusionary (do not buy “bad” stocks) or buy-and-hold. However, a relatively new strategy to ESG investing is the long-short strategy. This strategy involves buyingContinue reading “ESG Investing and the Long-Short Strategy”
