Research Insights: Do Sovereign Wealth Funds and Pension Funds Sacrifice Financial Returns to Follow Environmental, Social and Governance Investment Strategies?
Peer Reviewed
Date issued
Oct 2020
Publication
Subject
Governance;
Investment Policy;
Pension Systems;
Sovereign Wealth Fund
JEL code
Q50 - Environmental Economics: General;
G18 - Government Policy and Regulation;
G15 - International Financial Markets;
G11 - Portfolio Choice • Investment Decisions;
G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill
Country
Chile
Category
Catalogs and Brochures
Using Chile as a case study, this document finds that financial returns would not have been lower if sovereign wealth and pension funds had followed environmental, social and governance (ESG) investment strategies. In this case study, following ESG investment strategies would have provided better financial returns than conventional investments during the first months of the coronavirus pandemic (January to May 2020).
