With such a wide range of social and economic uses, energy has become essential to global infrastructure and operations, regardless of economic or environmental cost. Renewable energy sources, where energy is obtained from natural sources such as the sun and wind, currently stand as important...

This study explores the “dark side” of the corporate green bond markets. We first document that greenwashing is not uncommon in green bond markets, as some corporates are found to have no reduction in greenhouse gas emission intensities after their initial green bond issuance. Next, we find...

This handbook in Sustainable Finance corresponds to the lecture notes of the course given at University Paris-Saclay, ENSAE and Sorbonne University. It covers the following chapters: 1. Introduction, 2. ESG Scoring, 3. Financial Performance of ESG Investing, 4. Sustainable Financial Products, 5....

I analyze risk and return dynamics of sustainable investments with a focus on investor demand. I find that demand for green stocks in comparison with brown stocks is higher and led by active institutional investors especially during the last quinquennium. Predictive regressions show that one...

These lectures notes have been written for the course in Sustainable Finance given at the University of Paris-Saclay. The slides cover the following topics: (1) Introduction, (2) ESG Investing, (3) Impact of ESG Investing on Asset Prices and Portfolio Returns, (4) Equity Portfolio Optimization...

We examine the novel phenomenon of sustainability-linked bonds (SLBs). These bonds’ coupon is contingent on the issuer achieving a predetermined sustainability performance target. We estimate the yield differential between SLBs and non-sustainable counter-factuals by matching bonds from the...

The rise of sustainable finance, ESG investment, and sustainability reporting, has gradually led to a growing disconnect among many financial-sector and corporate stakeholders, which can be observed between their positive sustainability performance claims and the organizational resources and...