ESG investing, which has attracted some $40 trillion thus far and is increasingly focused on the E-for-environment, is essentially a two-sided coin. One side seeks to avoid owning stock in companies with substantial environmental liabilities or reliance on operations that pollute. This risk-avoidance impulse also gets portrayed as altruistic, wanting to shun perceived bad actors. Think Exxon, the oil and gas giant.The other side of the coin is the desire to own companies that might profit from the shift to a low-carbon economy. Think First Solar, maker of solar panels.Professor Huang Kanyuan of the School of Management and Economics, The Chinese University of Hong Kong, Shenzhen and his collaborators focused on ESG investment in China. The paper "ESG Investors in China Focused on Profit Potential of Climate Change" was recommended by UCLA Anderson Review.
Author
Huang Kanyuan
Assistant Professor, School of Management and Economics, CUHK-Shenzhen
Research Area
Information Disclosure, Equity Analysts, Debt Contracting and Entrepreneurship
Co-authors
Henry L. Friedman
(UCLA Anderson)
Kaiwen Wu
(Shanghai Lixin University of Accounting and Finance)
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