The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China

Broadstock, David C.; Chan, Kalok; Cheng, Louis T. W.; Wang, Xiaowei

doi:10.1016/j.frl.2020.101716

Cited by 825 publications

(531 citation statements)

References 17 publications

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“…More recently, the COVID-19 pandemic has spurred research on sustainable investments and market shock, although findings remain inconclusive. Broadstock et al [19], looking to Chinese firms, support the view that high ESG scores protect firm performance, while Folger-Laronde et al [20] do not find evidence of any insurance role by high ESG scores when they analyze the relationship between ETF performance and Eco-fund ratings.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…The literature provides opposing results through empirical investigations of the relationship between financial and non-financial performance (e.g., [11,12,18], and market downturns (e.g., [3]). While the pandemic caused by the Coronavirus Disease (COVID-19) is pushing research on sustainable investments and bear market conditions, the results are currently limited to specific areas (e.g., the Chinese stock market as in Broadstock et al [19]) or specific sustainable ratings (e.g., the eco-fund rating used by Folger-Laronde et al [20]).…”

Section: Introductionmentioning

confidence: 99%

“…Finally, focusing on several sustainable indexes allows us to consider different types of sustainable scores, instead of just one score as in previous research on indexes and market shocks (e.g., [27,36]) or by recent research on sustainable investments and the COVID-19 pandemic (e.g., [19,20]).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of COVID-19 Lockdowns on Sustainable Indexes

Chiappini

Vento

Palma³

2021

Sustainability

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This paper analyzes the response of sustainable indexes to the pandemic lockdown orders in Europe and the USA, contributing to both the research on the effects of the global pandemic outbreak and the resiliency of sustainable investments under market distress. Our results demonstrate that sustainable indexes were negatively impacted by lockdown orders; however, they did not show statistically significant different abnormal returns compared to traditional indexes. Similarly, our empirical results confirm that sustainable screening strategies (negative, positive, best in class) did not have an influence during such announcements. These results are robust across several model specifications and robustness tests, including nonparametric tests, generalized autoregressive conditionally heteroskedastic (GARCH) estimation of abnormal returns, and alternative events. The findings suggest that investors do not have to pay the price for the investments in sustainable assets when a bear market occurs; consequently, ceteris paribus, these investments appear suitable for financial-first investors. Such results have relevant practical consequences in terms of sustainable investment attractiveness and market growth.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Impact of COVID-19 Lockdowns on Sustainable Indexes

Chiappini

Vento

Palma³

2021

Sustainability

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“…ISSN 2345-0282 (online) http://jssidoi.org/jesi/ 2021 Volume 8 Number 4 (June) http://doi.org/10.9770/jesi. 2021.8.4(20) Even though there is limited research on this topic so far, some early studies suggest that companies having better ESG performance are also more resilient and absorb the shocks during the pandemic better (OECD, 2020), (Broadstock et al, 2021).…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

Do Baltic investors care about environmental, social and governance (ESG)?

Zumente¹,

Bistrova²

2021

JESI

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As the environmental, social and governance (ESG) adoption practices in large and developed economies are becoming more sophisticated, in the still developing economies the non-financial information disclosure practices are gradually evolving. This article aims to capture the ESG implementation practices and challenges of the financial investors and banks operating in the Baltic countries -Lithuania, Latvia and Estonia. By analyzing survey data of 37 financial market players, the results reveal that around 81% of the respondents already use ESG data when evaluating their investments, which can partly be explained by the regulatory drivers coming from the large share of private equity and venture funds managing local and international public funding. Moreover, a substantial average weight of 0.39 is found to be attributed to the sustainability factors in the investment evaluation process, which is rather high given the general perception of the ESG being a recent addition to the investment evaluation tools. While 51% of the respondents admitted that Covid-19 pandemic has made no changes in their ESG practices, there are other common challenges named by the investors e.g. lack of general and quantifiable ESG data from the side of the companies and struggles to find matching benchmarks for the large share of the small and midsized companies dominating the Baltic investment market. By addressing the obstacles highlighted by this research, the policy makers can explore the ways how to foster a wider adoption of ESG policies in the Baltic investment universe.

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“…More recent works present some relations of ESG and covid-19, understanding ESG pillars as business risk mitigators. (Broadstock et al, 2020;Ferriani and Natoli, 2020).…”

Section: Introductionmentioning

confidence: 99%

ESG strategies to deal with COVID-19 in a Brazilian public research company

Jesus

Nascimento

2021

BJO&PM

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Goal:The paper aims to describe and discuss some practices and strategies that have been taken place in Embrapa Soils -a public research company that develops research in soil science -to deal with COVID-19 effects during the year 2020.Design / Methodology / Approach: We have chosen the ESG approach -Environmental, Social and Governance -as a theoretical background to analyze the strategies and practice we bring up in this paper. Information we have used was collected from internal management systems.Results: Results show that the company has found many strategies to deal with COVID-19 in the three pillars of ESG. Positive results the company has reached rely on leadership, processes adaptation and the strength of personal and professional connections among the employees. Limitations of the investigation:Strategies and practices we present are limited to the scope of one singular company. ESG is a methodology that we have used a posteriori to contextualize and analyze the situation. Practical implications:Learning and reinforcing the ESG approach have been an important tool for the company to think about itself beyond the boundaries of financial approaches. It has the potential to spread to other companies or public agencies that do not profit directly from its activities.Originality / Value: Sharing strategies and practices companies have used to deal with covid-19 is important as a benchmarking activity for other companies. This paper presents a consistent narrative of using ESG not only as a way of managing in normal conditions but making it the core business for managing in uncertain times.

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The role of ESG performance during times of financial crisis: Evidence from COVID-19 in China

Cited by 825 publications

References 17 publications

The Impact of COVID-19 Lockdowns on Sustainable Indexes

The Impact of COVID-19 Lockdowns on Sustainable Indexes

Do Baltic investors care about environmental, social and governance (ESG)?

ESG strategies to deal with COVID-19 in a Brazilian public research company

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