scholarly journals A Reference Model of Sustainability Disclosure based on four Sustainability Stock Indexes

2016 ◽  
Vol 8 (4) ◽  
pp. 44 ◽  
Author(s):  
Hong Yuh Ching ◽  
Thiago Toste ◽  
Renan Tardelli
Keyword(s):  
Reference Model ◽  
Corporate Sustainability ◽  
Positive Signal ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Sustainability Index ◽  
Fund Managers ◽  
Sustainability Disclosure ◽  
Dow Jones Sustainability Index ◽  
Stock Indexes

The study proposes to develop a reference model of sustainability disclosure based on the models and requirements of four sustainability indexes - Dow Jones Sustainability Index, Corporate Sustainability Index ISE, Frankfurt STOXX and Financial Times FTSE ESG. The approach employed to develop the model is a qualitative analysis of the complementarity among the Stock indexes above mentioned alongside a literature review on sustainability disclosure frameworks. There is no consensus around what should be measured and how. Yet, there is no study in the literature that has ever discussed the models of the sustainability stock indexes and the respective data required in each one of them or compared these models and their requirements. The present study attempts to fulfill this gap by examining the initiatives and requirements of four prominent sustainability indexes. This study contributes to the sustainability responsible investment literature. The inclusion of a firm in a sustainability index can be perceived as a positive signal by investors and this can be explained by signaling theory. This analysis can help investors and/or socially responsible fund managers to screen the stocks against this reference model and determine those firms that are more adherent to it.

scholarly journals The Use of Corporate Sustainability Indices : A Case Study on the Dow Jones Sustainability Index

2021 ◽  
Author(s):  
Doaa Mohammed Elkhawas
Keyword(s):  
North America ◽  
Corporate Sustainability ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Sustainability Index ◽  
Dow Jones Sustainability Index ◽  
Sustainability Reports ◽  
Similarities And Differences ◽  
Sustainability Indices

Corporations are under growing pressure from socially responsible investors to consider the environmental and social impacts of their operations. To help highlight corporations that have taken steps to address these issues, a number of sustainability indices have been developed. While there is a growing body of literature that focuses on sustainability indices, little is known on how they are used in practice. The purpose of this project was to explore the use of sustainability indices in corporations. In this project, the Dow Jones Sustainability Index North America (DJSINA) was used in a case study. The project consisted of three key phases: a content analysis of corporate sustainability reports in North America, a survey with Canadian experts on the DJSINA, and a review of the DJSI website. The project highlights the similarities and differences in the use of the DJSI by Canadian and American corporations. As the first study focusing on the use of the DJSINA, the results will be of interest to practitioners and academics in socially responsible investment and corporate sustainability.

scholarly journals The Use of Corporate Sustainability Indices : A Case Study on the Dow Jones Sustainability Index

2021 ◽  
Author(s):  
Doaa Mohammed Elkhawas
Keyword(s):  
North America ◽  
Corporate Sustainability ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Sustainability Index ◽  
Dow Jones Sustainability Index ◽  
Sustainability Reports ◽  
Similarities And Differences ◽  
Sustainability Indices

Corporations are under growing pressure from socially responsible investors to consider the environmental and social impacts of their operations. To help highlight corporations that have taken steps to address these issues, a number of sustainability indices have been developed. While there is a growing body of literature that focuses on sustainability indices, little is known on how they are used in practice. The purpose of this project was to explore the use of sustainability indices in corporations. In this project, the Dow Jones Sustainability Index North America (DJSINA) was used in a case study. The project consisted of three key phases: a content analysis of corporate sustainability reports in North America, a survey with Canadian experts on the DJSINA, and a review of the DJSI website. The project highlights the similarities and differences in the use of the DJSI by Canadian and American corporations. As the first study focusing on the use of the DJSINA, the results will be of interest to practitioners and academics in socially responsible investment and corporate sustainability.

scholarly journals Socially Responsible HR in Action: Learning from Corporations Listed on the Dow Jones Sustainability Index World 2018/2019

2021 ◽  
Vol 13 (6) ◽  
pp. 3237
Author(s):  
Pyounggu Baek ◽  
Taesung Kim
Keyword(s):  
Multinational Enterprises ◽  
Corporate Sustainability ◽  
Action Learning ◽  
Socially Responsible ◽  
Sustainability Index ◽  
Responsible Management ◽  
Dow Jones Sustainability Index ◽  
The Individual ◽  
Corporate Social

As ethical management, corporate social responsibility (CSR), and corporate sustainability (CS) are increasingly permeating business discourse, contemplating the role of human resources (HR) in helping organizations with socially responsible management is a proactive acceptance of stakeholders’ expectations while reinforcing the field’s identity and contribution. In response, the we examined the HR policies and practices of 46 multinational enterprises (MNEs) listed on the Dow Jones Sustainability Index (DJSI) World 2018/2019 to add new insights to the literature and inform the HR field on how to move forward with socially responsible HR. Content analysis and inductive conceptualization of the MNEs’ HR activities produced a triangular pyramid for socially responsible HR, constructed with eight major themes at the individual, organizational, and institutional levels. Building on the findings, we suggest implications for practice and research, and conclude with urging the HR community to demonstrate leadership in setting the agendas and facilitating change toward socially responsible management.

scholarly journals Inclusions in and Exclusions from the S&P 500 Environmental and Socially Responsible Index: A Fuzzy-Set Qualitative Comparative Analysis

2019 ◽  
Vol 11 (4) ◽  
pp. 1211 ◽  
Author(s):  
Juan Pineiro-Chousa ◽  
Noelia Romero-Castro ◽  
Marcos Vizcaíno-González
Keyword(s):  
Comparative Analysis ◽  
Fuzzy Set ◽  
Corporate Sustainability ◽  
Qualitative Comparative Analysis ◽  
Business Managers ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Rating Agencies ◽  
Corporate Sustainability Performance ◽  
Sustainability Disclosure

Socially responsible investment (SRI) indices provide an interesting opportunity to analyse the links between corporate financial performance (CFP) and corporate sustainability performance (CSP). However, few studies focus on the antecedents of inclusions in and exclusions from SRI indices. Specifically, the implications of corporate sustainability disclosure (CSD) have been largely ignored in this field. Furthermore, previous literature on the CSP-CSD-CFP links shows inconclusive results that have been attributed to both methodological and measurement problems, which suggest the existence of asymmetry, equifinality and complexity amongst these links. This study targets two under-researched areas regarding the determinants of changes in the composition of SRI indices, and the effects of CSD on CSP. This study also attempts to overcome the methodological and measurement limitations of previous studies on the CFP-CSD-CSP links. The study presents a fuzzy-set qualitative comparative analysis (fsQCA) to explore how different combinations of CFP and CSD indicators are related to inclusions in an SRI index (assumed as expressions of a good CSP), and exclusions from an SRI index (equivalent to a poor CSP). The empirical results reveal that a combination of different CSD indicators is necessary, but not sufficient, to lead to the inclusion in or exclusion from an SRI index, and that CFP measures have asymmetrical effects on CSP. CSD is a relevant antecedent or precondition of CSP that can motivate changes in corporate behaviours towards an improved CSP. Poor CSP, leading to an exclusion from the index, is associated with poor CSD and a deterioration of CFP. The implications for researchers, business managers, SRI rating agencies and policymakers are derived.

scholarly journals Do Socially Responsible Investment Funds Sell Losses and Ride Gains? The Disposition Effect in SRI Funds

2021 ◽  
Vol 13 (15) ◽  
pp. 8142
Author(s):  
Beatrice Boumda ◽  
Darren Duxbury ◽  
Cristina Ortiz ◽  
Luis Vicente
Keyword(s):  
Mutual Fund ◽  
Economic Loss ◽  
Investment Strategy ◽  
Socially Responsible Investment ◽  
Disposition Effect ◽  
Socially Responsible ◽  
Investment Funds ◽  
Responsible Investment ◽  
Fund Managers ◽  
Ethical Investments

An increasing percentage of the total net assets under professional management is devoted to ethical investments. Socially responsible investment (SRI) funds have a dual objective: building an investment strategy based on environmental, social, and corporate governance (ESG) screens and providing financial returns to investors. In the current study, we investigate whether this dual objective has an influence on the behavior of mutual fund managers in the realization of gains and losses. Evidence has shown that most investors in SRI funds invest in those funds primarily because of their social concerns. If the motivations of SRI managers align with those of SRI investors, SRI managers might then have more incentives than conventional managers to hold onto losing stocks if they feel their social value compensates for the economic loss. We hypothesize that SRI managers would be less prone to the disposition effect than conventional managers. Pertaining to the disposition effect, we do not find evidence of a difference in the behavior of SRI fund managers compared with that of conventional fund managers. Our results hold, even when considering market trends, management structure, gender, and prior performance.

Sustainability-themed mutual funds: an empirical examination of risk and performance

2018 ◽  
Vol 19 (3) ◽  
pp. 247-261 ◽  
Author(s):  
Federica Ielasi ◽  
Monica Rossolini ◽  
Sara Limberti
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Strategies ◽  
Socially Responsible ◽  
Content Type ◽  
Responsible Investment ◽  
Fund Managers ◽  
And Performance ◽  
Sustainable And Responsible Investment ◽  
Ethical Funds

PurposeThis paper aims to analyze the portfolio characteristics and the performance measures of sustainability-themed mutual funds, compared to ethical mutual funds that implement different sustainable and responsible investment strategies.Design/methodology/approachThe study refers to a European sample of 106 ethical funds and 51 sustainability-themed funds. The monthly performance of each fund is downloaded from Bloomberg for the period from January 1996 to December 2015. By applying a Fama and French (1993) three-factor model, the authors overcome the limits of a capital asset pricing model (CAPM) based-single index model, to compare the performance of the two categories of funds.FindingsSustainability-themed funds do not differ significantly from ethical funds in terms of portfolio attributes, except for market capitalization, age and net asset value. Regarding performance measures, the results shows that sustainability-themed funds have a lower underperformance than ethical funds (as measured by Jensen’s alpha), whereas the samples do not differ in terms of market risk (as measured by Beta coefficient). The idiosyncratic risk of sustainability-themed funds is positively influenced by the specific portfolio strategies. The sustainability-themed funds show a higher concentration in the industrial sector and a lower exposure to financial sector than ethical funds; in terms of geographical strategy, they are more global and international oriented; they mainly focus on small caps and value stocks.Research limitations/implicationsThe different sustainable and responsible investment strategies can be applied simultaneously and in a growing number of possible combinations. Mutual fund managers can consider thematic approach as an efficient opportunity for reconciling financial performance and economic sustainability. It is demonstrated that sustainability-themed funds adopt a portfolio strategy significantly different from ethical funds and from the environmental, social and governance benchmarks. Mutual fund managers implement a thematic specialization without any negative impact on the funds returns compared to ethical funds; actually, with a proper diversified portfolio, they are able to reduce idiosyncratic risk.Originality/valueThe analysis is extremely innovative, especially for the thematic sample. During the past 15 years, literature about sustainable and responsible investment has been focused especially on the differences in terms of risk and performance between socially responsible and conventional funds. This paper, starting from the methodology applied in these studies, wants to compare two different types of socially responsible strategies, with a specific focus on sustainability-themed mutual funds, given their exponential growth in the past few years.

scholarly journals Encouraging Investors to Enable Corporate Sustainability Transitions: The Case of Responsible Investment in France

2019 ◽  
Vol 32 (2) ◽  
pp. 125-144 ◽  
Author(s):  
Patricia Crifo ◽  
Rodolphe Durand ◽  
Jean-Pascal Gond
Keyword(s):  
Institutional Investors ◽  
Corporate Sustainability ◽  
Socially Responsible Investment ◽  
Sustainability Transitions ◽  
Socially Responsible ◽  
Responsible Investment ◽  
Intermediary Organizations

This article studies the case of the socially responsible investment industry in France. This case accounts for how the socially responsible investment category and practices have successfully moved from the margins of the industry in the late 1990s to become mainstream over two decades. We bring to the forefront the importance of three complementary factors in the process of causing corporations to transition toward more sustainable businesses: the role of investors and, in particular, institutional investors; the importance of the presence of a clear category definition and of intermediary organizations, providing ratings, scores, and other calculative devices; and the role of governments and regulators. With other studies, this case stresses the fundamental influence of investors in how corporations manage sustainability transitions.

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