Work

Oil futures and ESG performance: Analyzing the balance between sustainability and asymmetry

Year: 2025

Type: article

Abstract: We examine the comovement between ESG stocks and international oil market returns for 13 developed and emerging countries. Our analysis spans daily returns from October 1, 2007, to August 5, 2022, and is segregated across different investment periods. The results of our work indicate the presence of significant short- to medium-term diversification benefits for ESG investments with oil futures in a portfolio, regardless of market conditions. During the long-run holding period (128–256 days), we report diversification benefits across the tail distribution along with a positive high dependence across the median returns’ distribution. The Russian ESG market exhibits minimal returns comovement across timescales and distributions; however, Sweden highlights this pattern across the lowest (2-4 days) and highest scales (128–256 days). Our results carry implications for socially responsible investors, policy makers and regulators for sustainable investments.

Source: Sustainable Futures

DOI: 10.1016/j.sftr.2025.101146

Authors: Neeraj Nautiyal, Mobeen Ur Rehman, Xuan Vinh Vo

Institutions: Sohar University, University of Economics Ho Chi Minh City, Viện Nghiên cứu kinh doanh, Keele University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: gold

Estimated APC paid: $2,340