Two main research areas:

• What is the effect of taking environmental, social and governance (ESG) issues into account on the performance of investments such as mutual funds and pension plans?
• How do ESG issues affect investors’ decision-making? Do they shift their investments towards responsible investments and how do they perceive the impact on return and risk?

These two lines of research support the Measuring Beyond initiative, launched as part of the partnership between HEC Montréal and the University of Oxford. This initiative contributes to the development of knowledge surrounding the measurement of corporate performance on ESG factors.

Examples of ongoing research projects:

• Survey of ESG preferences of pension plan contributors.

We examine the extent to which the ESG footprint of investments influences contributors’ decisions. What are their return expectations in return for a lower environmental footprint of their investments?

• The effect of ESG screening on mutual fund performance.

What is the impact of fossil fuel divestment and more advanced ESG strategies on mutual fund performance? The results will inform mutual fund and pension plan managers of the effects of ESG screening on the characteristics of their investments, particularly risk exposure.

• The impact of the level of awareness of climate change news in the media on corporate equity returns.

Is an increase in interest in climate change positively related to sustainable company stock returns? The results will help managers and policy makers understand the amplifying effect of society’s response to climate change news.