This study empirically investigates the determinants of financial success for startups engaged in impact versus conventional investment, performing a landscape analysis of the MENA region's financial ecosystem. Using the total equity funding amount (TEFA) as a performance proxy, we analyzed data...

We consider a framework in which both a principal and an agent care about a social mission, such as addressing social or environmental concerns. The agent requires financing and must satisfy a budget constraint. Under incomplete information, in addition to the usual quantity distortions for...

This paper assesses the environmental performance of sustainability-related investment funds compared to conventional ones across three dimensions: financed activities, portfolio carbon footprint, and investment in firms with ambitious science-based targets. We identify ESG funds using...

The paper empirically studies the role of sustainable impact investments in strengthening portfolio resilience, and risk adjusted performance in the UK equity market from 2017 to 2022. By applying an unique dataset of impact companies affiliated with the Social Stock Exchange UK (UKSSE), the...

In the face of climate and social challenges, the financial sector can no longer limit itself to an approach focused solely on profitability. Two movements are converging. On the one hand, more and more players are calling for the extra-financial impact of investments to be taken into account in...

It will be impossible to contain the global temperature rise to 1.5 to 2 degrees Celsius above pre-industrial levels unless emerging market and developing economies (EMDEs) decarbonise much more rapidly. This policy brief examines the economic case for advanced-country financial support for...

In recent years the transition towards a model of sustainable economic development has assumed central importance for the financial system. The inclusion of environmental, social and governance aspects (ESG - Environmental, Social and Governance) is taking an important role in the investment and...

Impact investing - i.e., investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return - attracts growing interest from investors. It is, thus, important for the sustainable finance work of ESMA and forms part of a specific...

This publication, developed in collaboration with Tameo, analyzes insights from the SSF Swiss Sustainable Investment Market Study 2024 and Swiss-specific data from the Tameo Private Asset Impact Fund Report 2023. Together, they provide a comprehensive view of the Swiss impact investing landscape...

Part 1 — Introduction -- Chapter 1 — Sustainable Finance: An Overview and Introduction By Dieter Gramlich -- Part 2 — Sustainable Finance Frameworks -- Chapter 2 — The Rise of Sustainable Debt By Adrien-Paul Lambillon -- Chapter 3 — Bridging Finance and Social Good: A Comprehensive...

This research examines the incorporation of Environmental, Social, and Governance (ESG) factors into portfolio construction, focusing on identifying companies with strong ESG practices and their relationship with financial performance. Drawing on a US sample of companies and timely ESG data...

Impact investing is a class of investments that are designed to meet the non-pecuniary preferences of investors (or beneficiaries) and aim to generate a positive externality actively and causally through their ownership and/or governance of the companies they invest in. Impact investing emerged...

Green bonds are financial instruments that deliver both returns and environmentally positive outcomes. They can be a key part of strategies to incorporate climate action into financial decision-making and help developing countries meet their Paris Agreement and Sustainable Development Goal...

In this paper we investigate the opportunity to issue a Special Purpose Vehicle with a mixed capital structure dedicated to the development of green and social infrastructure in less developed areas of the European Union

Impact investing is based on using the ESG framework as a tool to evaluate firms that engage in generating positive impact. Most impact investors and fund managers now integrate the ESG framework in their investment and stock-picking process. However, due to lack of standardisation of ESG...

These lectures notes have been written for the course in Sustainable Finance given at the University of Paris-Saclay. The slides cover the following topics: (1) Introduction, (2) ESG Investing, (3) Impact of ESG Investing on Asset Prices and Portfolio Returns, (4) Equity Portfolio Optimization...

The rise of sustainable finance, ESG investment, and sustainability reporting, has gradually led to a growing disconnect among many financial-sector and corporate stakeholders, which can be observed between their positive sustainability performance claims and the organizational resources and...

We consider a framework in which both a principal and an agent care about a social mission, such as addressing social or environmental concerns. The agent requires financing and must satisfy a budget constraint. Under incomplete information, in addition to the usual quantity distortions for...