Sustainability Funds Hardly Direct Capital Towards Sustainability

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Literature 2°Investing Initiative / Wüest Partner 2020: Bridging the Gap: Measuring progress on the climate goal alignment and climate actions of Swiss Financial Institutions. Commissioned by the Federal Office for the Environment. Berne. d’Aprile, P. et al. 2020: How the European Union could achieve net-zero emissions at net-zero cost, URL: https://www.mckinsey.com/business-functions/sustainability/our-insights/howthe-european-union-could-achieve-net-zero-emissions-at-net-zero-cost# [3 May 2021]. Azizuddin, K. 2021: SEC flags ‘potentially misleading claims’ by ESG fund managers, in: Responsible Investor, April 12, 2021. Baker, M., Bergstresser, D., Serafeim G., Wurgler J. 2018: Financing the Response to Climate Change: The Pricing and Ownership of U.S. Green Bonds. Working Paper, National Bureau of Economic Research. URL: http://www.nber.org/papers/w25194 [9 Feb. 2021]. BBI 2020: Bundesgesetzt über die Verminderung von Treibhausgasemissionen (CO2-Gesetz), URL: https://www.admin.ch/opc/de/federal-gazette/2020/7847.pdf [5 Feb. 2021]. Beltratti, A. 2005: Capital market equilibrium with externalities, production and heterogeneous agents. Journal of Banking & Finance 29(12): 3061–3073. Campiglio, E., Monnin, P., von Jagow, A. 2019: Climate Risks in Financial Assets, URL: https://www.cepweb.org/wp-content/uploads/2019/11/CEP-DN-Climate-Risks-in-Financial-Assets.pdf [April 10, 2021]. Ceccarelli, M., Ramelli, S., Wagner, A.F. 2020: Low-carbon Mutual Funds (April 10, 2020), Swiss Finance Institute Research Paper No. 19-13, European Corporate Governance Institute – Finance Working Paper No. 659/2020, URL: http://dx.doi.org/10.2139/ssrn.3353239 [May 3, 2021]. Chen, J. 2020: Tracking Error, URL: https://www.investopedia.com/terms/t/trackingerror.asp [Feb 10, 2021]. Christensen, D., Serafeim, G., Sikochi, A. 2019: Why is corporate virtue in the eye of the beholder? The case of ESG ratings, Harvard Business School Working Paper. Crane, A., Henriques, I., Husted, B.W., Matten, D. 2017: Measuring Corporate Social Responsibility and Impact, in: Business & Society 56(6), July 2017, pp. 787-795. CSSF / Association of the Luxembourg Fund Industry (ALFI) 2020: Net assets under management in Luxembourg funds, URL: https://www.alfi.lu/Alfi/media/Statistics/Luxembourg/ouverture_section_statistique_chiffres_du_mois.pdf [Feb 8, 2021]. Dimson, E., Marsh, P., Staunton, M. 2020: Divergent ESG Ratings, in: The journal of Portfolio Management, November 2020.

INFRAS | 3 May 2021 | Literature


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A.2 Inrate Climate Impact

3min
pages 94-96

Tables

0
page 104

Literature

7min
pages 105-110

B. Further Evaluations

3min
pages 97-102

7.3. Recommendations

5min
pages 85-87

Figures

1min
page 103

7.2. Current regulations point into the right direction but have major shortcomings

6min
pages 82-84

6.2. Asset management effect present, but of limited relevance

4min
pages 73-74

6.1. Capital allocation effect hardly existent

2min
page 72

6. Discussion of Results

1min
page 71

5.2. Current regulatory changes supporting effective capital allocation

6min
pages 68-70

5.1. General prerequisites for effective capital allocation

11min
pages 62-67

4.3. Regression: effects of sustainability approaches on the funds’ portfolio impact

2min
pages 57-58

4.4. Case studies

3min
pages 59-60

4.1. Overview

1min
page 50

5. Framework Conditions for Effective Capital Allocation

1min
page 61

4.2. Comparisons

6min
pages 51-56

4. Empirical Results

2min
page 49

3.4. Limits of this analysis

7min
pages 46-48

3.2. Data set

18min
pages 34-44

1. Aim and Scope of the Study

1min
page 19

2.2. How investments can contribute to sustainability

9min
pages 22-26

Interpretation: Possible causes

5min
pages 11-13

Results of the empirical analysis

3min
pages 9-10

2.3. How to assess capital allocation contributions to sustainability

6min
pages 27-29

Scope of the empirical analysis

4min
pages 6-8

Conclusions and consequences

2min
page 14
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