Faithin Omaha eBook Collection

Download or read book Environmental Screening Along the Value Chain written by Nicole Grandi and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: More investors are turning to sustainable development as a focus for their investment. Both institutional and retail investors play an important role in achieving societal sustainability goals like the SDGs. Retail investors need access to transparent and legitimate information if actively investing in their values to direct their capital towards sustainable companies, which they do not always have due to limited resources and greenwashing behavior by companies. Therefore, the questions arise if retail investors can achieve good returns when picking stocks after their values and if access to more qualitative information is advantageous. I simulate an investor's profile and perform a negative sustainability-themed portfolio screening through Scope 3 Downstream Emissions to answer these questions. Using the proxies for portfolio performance, mean monthly returns, risk, and Sharpe ratio I analyze portfolios performance of two differently informed portfolios, one by rating, the other by self-information through webpages and sustainability reports, and benchmark them with an index portfolio. After screening it with emission information, I find that all three proxies decrease from the initial portfolio with available emissions data. Furthermore, through analyzing sustainability reports, I identify the drawbacks of the reports and make recommendations to increase the legitimation of information by companies.