---
title: ESG Investment Considerations
url: https://www.ml-quant.com/papers/ssrn/5191017/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5191017
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5191017
featured: 2025-03-26
citations: unknown
topic: Corporate Finance
---


# ESG Investment Considerations

The article discusses considerations for investment managers investing in environmental, social, and corporate governance standards, including firm exclusion, ESG integration, third-party ESG ratings, and impact on financial performance.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5191017
- Identifier: SSRN 5191017
- Released: 2025-03-24
- First featured: Quant Letter No. 90 (2025-03-26): https://www.ml-quant.com/issues/2025-03-26/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Corporate Finance

## Related

- [ESG Reputation Risk Matters: An Event Study Based on Social Media Data](https://www.ml-quant.com/papers/arxiv/2307.11571/): The paper examines the influence of social media on shareholders' reactions to Environmental, Social, and Governance-related reputational risks, revealing a significant decrease in abnormal returns after an ESG-risk event.
- [Climate Risk and Corporate Value: Evidence from Temperature Bins and Panel Regression](https://www.ml-quant.com/papers/arxiv/2503.14233/): The study reveals that extreme temperatures significantly decrease the asset value of businesses, with state-owned and foreign-funded firms being more resilient.
- [Using firm-level supply chain networks to measure the speed of the energy transition](https://www.ml-quant.com/papers/arxiv/2503.01572/): Research indicates Hungary's transition to low-carbon electricity is too slow to achieve climate neutrality by 2050 due to a 'lock-in' effect.
- [SOE's ESG Performance on Financial Flexibility: The Evidence from the Hong Kong Stock Market](https://www.ml-quant.com/papers/arxiv/2502.14261/): Research shows that Hong Kong companies with strong environmental, social, and governance (ESG) performance between 2018 and 2022 have better financial flexibility, especially in unstable economies.
- [Optimal dividends for a NatCat insurer in the presence of a climate tipping point](https://www.ml-quant.com/papers/arxiv/2504.19151/): The research investigates the best dividend strategies for an insurance company dealing with natural disaster claims, indicating that a climate tipping point can benefit shareholders looking to maximize dividends.
- [Internal Carbon Price and Firm Performance](https://www.ml-quant.com/papers/ssrn/5252987/): The adoption of internal carbon pricing (ICP) decreases future profitability and stock returns but increases firm valuation, showing investor value in sustainability commitment.
