Amel-Zadeh, Lustermans, and Pieterse-Bloem (2020)

Amel-Zadeh, Amir, Rik Lustermans, and Mary Pieterse-Bloem. “Sustainability and Private Wealth Investment Flows.” Working paper (University of Oxford), December 2020.

From the author’s abstract: “This study examines the effect of sustainability ratings on wealthy retail investors’ asset allocation decisions. Using a proprietary dataset of monthly equity and bond holdings of European private wealth investors, we document significantly larger investment flows into assets with high sustainability ratings compared to those with low ratings. We further find that investors react to changes in sustainability ratings of their portfolio assets by rebalancing their portfolios towards assets with higher sustainability ratings… [W]e document a plausibly causal effect of assets' sustainability ratings on wealthy retail investors' investment decisions.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3576687