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PreprintCited by 254Sustainable Finance and Green BondsCorporate Social Responsibility ReportingFinancial Markets and Investment Strategies

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Does Sustainability Generate Better Financial Performance? Review, Meta-analysis, and Propositions

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Atz, Ulrich, Van Holt, Tracy, Liu, Zongyuan Zoe, Bruno, Christopher·2020·Journal of Sustainable Finance & Investment
DOI 10.2139/ssrn.3708495
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Abstract

Sustainability in business and ESG (environmental, social, and governance) in finance have exploded in popularity among researchers and practitioners. We surveyed 1,141 primary peer- reviewed papers and 27 meta-reviews (based on ~1,400 underlying studies) published between 2015 and 2020. Aggregate conclusions from a sample suggest that the financial performance of ESG investing has on average been indistinguishable from conventional investing (with one in three studies indicating superior performance) – in contrast with research in the wider management literature as well as industry reports. Until recently top finance journals did not publish climate change related studies, yet these studies capture the frontier of corporate risk and ESG investment strategies. We developed three propositions: first, ESG integration as a strategy seems to perform better than screening or divestment; second, ESG investing provides asymmetric benefits, especially during a social or economic crisis; and third, decarbonization strategies can potentially capture a climate risk premium.

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Metadata

Authors
Atz, U., Van Holt, T., Liu, Z. Z., & Bruno, C.
Affiliations
  • New York University (US)
  • Council on Foreign Relations (US)
  • University of Pennsylvania (US)
Corresponding author
Atz, Ulrich
ORCID
Venue
Journal of Sustainable Finance & Investment
Publisher
Elsevier BV
Published
2020
Volume
13
Issue
1
Pages
802-825
ISSN
2043-0795 (ISSN-L)
DOI
10.2139/ssrn.3708495
OpenAlex
W4294349391
Cited by
254
References
1
Citations by year
2026: 54 · 2025: 82 · 2024: 59 · 2023: 38 · 2022: 10 · 2021: 6 · 2020: 1
FWCI
34.61
Type
journal article
Language
en
Open access
Locations
  • Journal of Sustainable Finance & Investment (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • RePEc: Research Papers in Economics (acceptedVersion)
  • Archivio istituzionale della Ricerca - Bocconi (submittedVersion)
Funders
Cooperative Research Centre for Infrastructure and Engineering Asset Management
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
Keywords
ESG investing, corporate sustainability, financial performance, ESG integration, ESG screening, divestiture, decarbonization, business risk

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CoChat. (2026). Citation check: Does Sustainability Generate Better Financial Performance? Review, Meta-analysis, and Propositions. https://app.cochat.ai/papers/10.2139/ssrn.3708495
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Atz, U., Van Holt, T., Liu, Z. Z., & Bruno, C. (2020). Does Sustainability Generate Better Financial Performance? Review, Meta-analysis, and Propositions. Journal of Sustainable Finance & Investment. https://doi.org/10.2139/ssrn.3708495