Abstract
We study how companies' sustainability performance affects their future operational and financial performance. Using firms' inclusion in the FTSE4Good index series as an indicator of sustainability performance, a quasi-natural experiment shows that sustainability has a beneficial effect on firms' long-term financial performance. Our findings show a notable rise in the companies' profitability following their addition to the sustainability index. Additionally, companies that are part of the sustainability index are considered to have higher value compared to firms that are not part of a sustainability benchmark.
| Original language | English |
|---|---|
| Pages (from-to) | 666-687 |
| Number of pages | 22 |
| Journal | Journal of Sustainable Finance and Investment |
| Volume | 15 |
| Issue number | 3 |
| Early online date | 3 Oct 2024 |
| DOIs | |
| Publication status | E-pub ahead of print - 3 Oct 2024 |
Bibliographical note
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s)or with their consent.UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 3 Good Health and Well-being -
SDG 8 Decent Work and Economic Growth -
SDG 11 Sustainable Cities and Communities -
SDG 12 Responsible Consumption and Production
Keywords
- Corporate sustainability
- financial performance
- index inclusion/addition
- ESG
- environmental
- social and governance
ASJC Scopus subject areas
- Finance
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