We present a model of ESG integration where borrowers can deviate from ESG promises ex-post. Borrowers are incentivized to pursue ESG projects only when lenders can charge a high borrowing rate, which decreases the borrowers’ private benefit from pursuing financial returns. In the presence of...

Entrepreneurs and managers are increasingly aware that the environment can be both a threat and an opportunity to their current economic activities. This timely book discusses the question of environmental performance versus corporate practices and finds that environmental considerations can...