ET Index Research has investigated the relationship between equity returns and carbon intensity. The results indicated that portfolios of low-carbon intensity stocks have outperformed portfolios of high-carbon intensity stocks, and that this outperformance is significant. This relationship is...

This report focuses on three key questions for responsible investors: 1. Does responsible investment lead to outperformance or underperformance? 2. Can responsible investing actually impact company behaviour? 3. What is the optimal way to allocate an investment portfolio in a responsible way?...

There are long-standing debates in the financial economics literature regarding long-run risks, return seasonality, the impact of weather and the impact of climate. By disentangling the data into different frequencies this paper contributes several results to these topics. I find significant...

I develop a model of capital markets with heterogeneous firms and investors and a public good. Investors with concern for the public good develop endogenous portfolio tilts. These tilts depend on the degree to which an investment counterfactually contributes to the public good, and the price...

This paper, produced by the Policy Department on Citizens' Rights and Constitutional Affairs, looks into the Commission proposal for a European Accessibility Act. It briefly describes its contents, the Council discussions on the proposal, its Impact Assessment and the main points of contention,...

This paper, produced by the Policy Department on Citizens' Rights and Constitutional Affairs, looks into the Commission proposal for a European Accessibility Act. It briefly describes its contents, the Council discussions on the proposal, its Impact Assessment and the main points of contention,...

I propose and develop a framework for the financial economic analysis of investing with altruistic preferences. A key part of the framework is the precise definition of different forms of impact and, in particular, investor impact. This has several practical implications including that investor...

Voluntary disclosure should naturally arise in theory but may not in practice due to real-world frictions. This is important as self-selection bias could lead to erroneous results in statistical analyses of the disclosed data. This paper investigates climate-related disclosure in a...

We estimate a Markov operator credit migration model in which credit conditions vary through time in response to underlying macroeconomic factors. Emphasis is given to practical issues arising when fitting the model to a portfolio of risk rated credits, including the treatment of incomplete...