How strongly does ESG (environmental, social and governance) performance affect stock returns? Answering this question is difficult because existing measures of performance, ESG ratings, are noisy. To tackle the bias, we propose a noise-correction procedure, in which we instrument ESG ratings...

How does ESG (environmental, social, and governance) performance affect stock returns? Answering this question is difficult because existing measures of ESG perfor- mance -- ESG ratings -- are noisy and, therefore, standard regression estimates suffer from attenuation bias. To address the bias,...

The increasing global adoption and growth of Social Impact Investing and Impact Financing into a trillion-dollar industry is driven by the need to explore sustainable models for financing private ventures and public sector development initiatives. This paper presents an overview of these...