RESEARCH RADAR
"Mapping sustainable investing: Exploring ambiguities and consistencies among sustainable indices", published in September 2024 in the Journal of Environmental Management by Alberto Dreassi (University of Trieste and MIB Core Faculty), Enrica Bolognesi, Milena Migliavacca, Andrea Paltrinieri.
Abstract
Sustainable investing is perceived as a confusing black-box by many researchers, practitioners, and investors. Terminology, metrics, approaches, disclosure standards are quickly evolving, while the empirical evidence provides a growing number of mixed results. In this paper, we examine the composition, performance, and the risk-return profile of reference sustainable indices for the asset management industry, distinguishing between ethical and socially-responsible, faith-based, ESG and climate ones. Our findings reveal consistent investment trends across various sustainable indices, impacting their overall performance. Specifically, our analysis highlights a prevalent inclination towards large and growth-oriented companies, as well as a persistent focus on technology, financials, and commodity sectors. These results provide valuable insights for investors, asset managers, and index providers regarding the potential misalignment between an investment vehicle’s labelling and its actual composition, and the implications this discrepancy might have on investors’ expectations.Authors
Alberto Dreassi, Associate Professor of Banking and Finance at the University of Trieste and Professor of Insurance, Accounting and Control at MIB Trieste School of Management.Enrica Bolognesi, University of Udine
Milena Migliavacca, Catholic University of the Sacred Heart.
Andrea Paltrinieri, Catholic University of the Sacred Heart.
