Work

Environmental, social and governance risk exposures of mutual funds

Year: 2025

Type: article

Abstract: Frequent natural disasters caused by climate change and the COVID-19 pandemic have increased global awareness of sustainability issues with a consequent focus on sustainable finance. This study disaggregates the exposures of mutual funds to environmental, social, and governance risks using data from 18,648 investment funds. We find that investment in technology and financial firms and herding behavior support an environmental strategy but not necessarily governance or social responsibility. Further, funds with longer-tenured managers are less sustainability-focused, possibly entrenched from an era before ESG became a societal concern.

Source: Journal of Asset Management

DOI: 10.1057/s41260-025-00401-7

Authors: Christine Helliar, Barbara Petracci, Nongnuch Tantisantiwong

Institutions: University of South Australia, University of Bologna

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $3,190