No abstract

To contribute to overcoming global sustainability challenges, investors have been increasingly interested in making sustainable investments and incorporating environmental, social and governance (ESG) criteria into their portfolio selection decisions and managerial activities. However, these investors and other agents interested in sustainable investment need updated and robust information to support their decision making. We analyzed the performance of several Dow Jones Sustainability Indices (DJSIs) and compared them with their respective market benchmarks from 2013 to 2018. The indices comprise the following regions and countries: the world, the Asia-Pacific, Europe, emerging markets and the US. The analysis was conducted based on both classic and modern portfolio metrics. The results suggest that sustainable investment performance is still heterogeneous worldwide, but there is a promising opportunity for investors to obtain superior risk-adjusted returns in certain regions while incorporating sustainable investment practices. The findings are of utmost importance to financial market practitioners, business managers, academics and other stakeholders interested in promoting investments, corporate practices and scientific knowledge to achieve the Sustainable Development Goals (SDGs).

Sustainable finance and investment (SFI) is key to fostering sustainable global development. Research in this field has focused on specific topics, such as the financial performance of sustainable investments and companies committed to sustainability. The SFI literature is excessively fragmented, rendering it difficult to identify what constitutes the field and what differentiates it from traditional finance and investment. Based on a systematic literature review of 166 articles, we map and integrate the main elements of the SFI field and identify the most relevant avenues for further research. In this process, we provide a definition of SFI; identify the main players in the field; and describe their profiles, strategies, and outcomes. We also propose a framework for understanding the SFI field and a research agenda. This agenda organizes the main SFI research questions and suggests suitable approaches to address them. We conclude that SFI players have worked together to promote positive social and environmental impacts through their financial and investment activities. However, the under‐theorization of the SFI concept, the traditional short‐term nature of financial logic, and the lack of evidence on the SFI impacts on society and the environment are the greatest challenges facing the field.