Green Tilts

Lubos Pastor, Robert Stambaugh and Lucian A. Taylor

No 31320, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate financial institutions’ portfolio tilts that relate to stocks’ environmental, social, and governance (ESG) characteristics. In 2021, ESG-related tilts total 6% of the investment industry’s assets and average 22% of institutions’ total portfolio tilts. ESG tilts are larger for less-volatile stocks and for institutions with smaller size and greater active share, consistent with our theoretical predictions. Significant ESG tilts arise from the choice of stocks held and, especially, the weights on stocks held. The largest institutions tilt increasingly toward green stocks, while other institutions and households tilt increasingly brown. UNPRI signatories and European institutions tilt greener, banks browner.

JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2023-06
New Economics Papers: this item is included in nep-ban, nep-ene, nep-env and nep-fmk
Note: AP CF
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w31320.pdf (application/pdf)

Related works:
Working Paper: Green Tilts (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:31320

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31320

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().