Socially responsible investment: what is the potential profitability compared with a traditional investment strategy?
Insights from research at HEC Lausanne-UNIL – Is including environmental, social and governance (ESG) factors in an investment strategy more or less profitable than a standard approach to investment? That’s the question researchers Prof. Fabio Alessandrini and Prof. Eric Jondeau at HEC Lausanne (UNIL) have examined in their latest study.
In 2018, $30.7 trillion were invested in socially responsible investment (SRI) funds. This marked a 34% increase in just two years, with Europe leading the way (source: Global Sustainable Investment Alliance).
In light of this, and the increasing use of passive and smart beta strategies, researchers Prof. Fabio Alessandrini and Prof. Eric Jondeau from the Department of Finance at HEC Lausanne wanted to explore the impact of including ESG (environmental, social and governance) factors on the return made by investment portfolios.
What were their findings?
Find out what Prof. Alessandrini and Prof. Jondeau discovered in their new article, published on the research blog HECimpact.ch.
Get to know more about:
- Prof. Fabio Alessandrini: Fabio Alessandrini is a Titular Professor in the Finance Department of HEC Lausanne. His research interests are focused on quantitative methods in finance as well as alternative investments. More recently, he has worked more specifically on sustainable investing and how to incorporate ESG criteria into traditional and alternative investments. He is the co-director of CRML, a center for applied research in finance dedicated to building links between the industry and academia in the field of investments and finance. He is largely involved in the banking industry and currently holds the role of Chief Investment Officer for quantitative and alternative investments at Banque Cantonale Vaudoise.
- Prof. Eric Jondeau: Eric Jondeau is Full Professor of Finance at HEC Lausanne, University of Lausanne, and a Faculty Member of the Swiss Finance Institute. His main research interests are financial econometrics, the modelling of asset prices, portfolio allocation under non-normality, pension funds, systemic risk, and the estimation of rational expectations models.He is also the Director of the Center for Risk Management – Lausanne (CRML).
- Department of Finance: Research carried out by the Department of Finance covers all aspects of finance, including speculative market price determinants, corporate finance, market microstructure and financial institutions.
par HEC Communication