At Pax World, we regularly review investment reports, research and thought leadership papers that address sustainability, corporate social responsibility, the relationship between investment performance and Environmental, Social and Governance (ESG) factors and other topics of interest to investors and the investment community. From our ongoing review, we direct your attention to the following:
UBS: The Decade Ahead
UBS Financial Services Inc., Wealth Management Research, 2011
In this UBS report, The Decade Ahead, senior market and industry experts provide long- term analysis of a full range of subjects including the broadening reach of socially responsible investing (SRI).
Jeremy Grantham: Time to Wake Up: Days of Abundant Resources and Falling Prices are Over Forever
Jeremy Grantham, GMO Quarterly Letter, April 2011
In this newsletter, Mr. Grantham warns that the world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value.
Merrill Lynch: Values-Based Investing Comes of Age
Christopher J. Wolfe , The White Papers: Intelligence for the Informed Investor
Bank of America Private Banking and Investment Group, 2011
In this white paper, Mr. Wolfe discusses Values Based Investing (VBI), the strategy of putting investors’ assets where they do society and the planet good.
From Alpha to Sustainability
SAM Research, Robeco Quantitative Strategies, 2011
This white paper advocates that companies that can effectively manage risks and seize opportunities related to sustainability trends exhibit a superior capacity to prosper over the long run.
Demystifying Responsible Investment Performance
A joint report by The Asset Management Working Group of the United Nations Environment Programme Finance Initiative and Mercer, 2007
A review of twenty academic research papers that examine the link between ESG factors and investment performance.
Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices
Alex Edmans, Wharton School, University of Pennsylvania, 2007
This paper analyzes the relationship between employee satisfaction and long-run stock performance.
Employee Relations and Credit Risk
Rob Bauer, Jeroen Derwall, Daniel Hann, Maastricht University, Tilburg University,The Netherlands
This paper constructs an aggregate measure for the quality of employee relations based on the firm’s engagement in employment practices and policies.
The Economic Value of Corporate Eco-Efficiency
Nadja Guenstera, Jeroen Derwalla,b,e, Rob Bauerb,c,e, Kees Koedijka,b,d,e
RSM Erasmus University, Department of Financial Management, Maastricht University, Limburg Institute of Financial Economics (LIFE), ABP Investments, Centre for Economic Policy Research (CEPR), European Centre for Corporate Engagement (ECCE), 2006
This study adds new insights to the long-running corporate environmental-financial
performance debate by focusing on the concept of eco-efficiency.
The Relationship between Environmental Social Governance Factors and Stock Returns
John Evans & Dinusha Peiris, The University of New South Wales Australian School of Business, 2010
This paper examines the relationship between environmental social governance (ESG) factors and financial performance of US listed companies by considering not only impacts on stock return but also stock valuation and operating performance.
A New Quality Factor: Finding Alpha with Asset4 ESG Data
Jason M. Ribando, Ph.D. and George Bonne, Ph.D. Thomas Reuters, March 31, 2010
This paper describes the results of a study with the goal of determining the efficacy of ASSET4 scores as equity selection factors.
Companies that do good also do well
Laura McKnight, Marketwatch.com, March 23, 2011
This article reports on the results of several recent studies that determined that companies that made social responsibility a priority found that it positively impacted their bottom lines.
Investing in Climate Change 2010 – A Strategic Asset Allocation Perspective
DB Climate Change Advisors Deutsche Bank Group, January 2010
This comprehensive report provides new insight into the emerging opportunities in climate change investing.
Behind the Scenes
Marla Brill, FA Green, September 2011
This article discusses the trend of mainstream money managers sometimes discreetly including environmental, social and governance issues when selecting investments.
Equity Risk, Credit Risk and the Returns to Corporate Sustainability
Dan diBartolomeo, Northfield News, March 2011
This article examines the link between equity and credit risks and corporate sustainability.
Ten Things to Know about Responsible Investment & Performance
Kimberly Gladman, CFA, Ph.D., GovernanceMetrics International, Inc. March 16, 2011
This article attempts to provide an overview of the current state of academic knowledge on the issues of “Responsible Investment” strategies. The article is based on a review of studies posted on the Social Science Research Network (SSRN).
Is Earnings Quality Associated with Corporate Social Responsibility?
Yongtae Kim, Myung Seok Park and Benson Wier, The Accounting Review, forthcoming
This study examines whether socially responsible firms behave differently from other firms in their financial reporting.