How to Attract ESG Funds

The Journal of Impact and ESG Investing, vol. 5, pp. 116–132

Abstract

This study investigates the influence of environmental, social, and governance (ESG) practices on institutional fund holdings. Considering the growing importance of ESG-focused funds, I differentiate between ESG funds and general institutional funds. As a result, I identify key attractors for both general and ESG funds. Avoiding conventional ESG ratings, I concentrate on foundational ESG determinants like carbon emissions and board diversity, using data from S&P 500 companies from 2010 to 2021. My findings provide actionable guidance for companies aiming to attract ESG funds and improve their market value.

Authors 1

1. Arthur Enders corresponding Aachen is with the School of Business and Economics

   RWTH Aachen University

   Affiliation as printed

   is with the School of Business and Economics at RWTH Aachen University in Aachen, Germany. enders@econ.rwth-aachen.de