The Risk Awareness of Sovereign Wealth Funds in Relation to ESG Assets: Do Biggest World Institutional Investors Act Sustainably?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43925555" target="_blank" >RIV/62156489:43110/24:43925555 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.11118/ejobsat.2024.003" target="_blank" >https://doi.org/10.11118/ejobsat.2024.003</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/ejobsat.2024.003" target="_blank" >10.11118/ejobsat.2024.003</a>

Result language

angličtina

Original language name

The Risk Awareness of Sovereign Wealth Funds in Relation to ESG Assets: Do Biggest World Institutional Investors Act Sustainably?

Original language description

This paper investigates the dependence of the investment behavior of Sovereign Wealth Funds (SWFs) on the Environmental, Social, and Governance (ESG) performance of their underlying investments in public equity holdings during the period of 2007 to 2022 collectively overseeing a substantial 71% of total public equity holding investments by SWFs globally. The unique data set with ESG control variables consist of mainly self-reported Corporate Social Responsibility (CSR) ESG information (ESG rating from Refinitiv/LSEG) and dynamic risk assessed ESG information purely based on external evaluation of the firms (Reputational Risk Indicator from RepRisk). The control variable which monitors the Corporate Social Irresponsibility (CSI) of target companies is novel to previous studies. Our findings suggest that SWFs still consider self-reported CSR information more than public CSI data in their investment decisions. Furthermore, a change in past ESG data of underlying public equity holdings - both CSR and CSI - does not seem to have a significant effect on the investment into underlying public equity holdings. Our conclusions could help to encourage greater ESG integration into SWF investment strategies and promote sustainable investing practices more broadly not limited to liquid assets.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

<a href="/en/project/GA23-07983S" target="_blank" >GA23-07983S: Corporate social behavior and responses to CSR policies, institutions, and economic distress</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

European Journal of Business Science and Technology

ISSN

2336-6494

e-ISSN

2694-7161

Volume of the periodical

10

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

20

Pages from-to

5-24

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85201781879