As part of the Next Generation EU (NGEU) program, the European Commission has pledged to issue up to EUR 250 billion of the NGEU bonds as green bonds, in order to confirm their commitment to sustainable finance and to support the transition towards a greener Europe. Thereby, the EU is not only...

This paper develops a general equilibrium model of a productive economy with negative externalities. Investors are not willing to accept lower returns than their best investment alternatives and entrepreneurs maximize profits. If capital markets are subject to a search friction, an ESG fund can...

The evolution of COVID-19 provides information (e.g. daily confirmed contagion cases) to test the performance and resilience of green bonds and ESG indices during crisis periods. After controlling for variables accounting for the state of the economy and market conditions, we find a significant...

Private investors are an increasingly important voice in sustainability challenges. We examine investors' attitudes and behavior towards sustainable investing through a survey of 5,030 Finnish private investors. We document that 60 percent of all respondents consider environmental, social, and...

1: Introductory editorial, Marielle De Jong, Cécile Diana, Julie Malbois: Journal of Asset Management 2021, 2021: 77 (18, March 2021) -- 2: The impact of corporate social responsibility on corporate financial performance and credit ratings in Japan, Frank J. Fabozzi, Peck Wah Ng, Diana E....

The green bond market has demonstrated a significant expansion over the previous years. Nonetheless, it remains only a very small fraction of the overall bond market. Further growth in the green bond market would provide significant green investment, thereby helping to close the European Green...

Analysing the revised EU Sustainable Finance Strategy disseminated in two steps in April and July 2021, we identify as core issues of any sustainability-oriented financial regulation a lack of data on profitability of sustainable investments, a lack of broadly acknowledged theoretical insights...

This paper aims to assess the understanding of environmental, social and governance (ESG) considerations within the banking context and examines the current market practices in this area. To that extent this paper sets out the various definitions of ESG factors and also sets out how these then...

The Fintech Action Plan (see now also Digital Finance Strategy) and the Sustainable Finance Strategy both represent important pillars of the current EU policy agenda. Nonetheless, the two areas have been treated as separate for a long time, while they present certain common features and great...