Does superior social performance reduce the cost of capital – the return investors require for investing in a company? That’s a key question because, if so, then CEOs have strong incentives to improve their social performance. We’d expect the answer …
Responsible Investing in a Time of Crisis
What does it mean to be a responsible investor in a time of crisis? In my first article in this series, “Responsible Business in a Time of Crisis”, I suggested business leaders ask themselves “What’s in my hand?” In other …
The Inconsistency of ESG Ratings: Implications for Investors
Investors are increasingly scrutinizing the ESG performance of companies. This is a positive development – if CEOs know that investors evaluate them on ESG factors, not just short-term earnings, they’ll prioritise these factors over quarterly profit. Indeed, research shows that …