Does it matter to be a part of the sustainability index?

Chaman Shrestha, Panagiotis Andrikopoulos and Narayan Prasad Aryal

Journal of Sustainable Finance & Investment, 2025, vol. 15, issue 3, 666-687

Abstract: We study how companies’ sustainability performance affects their future operational and financial performance. Using firms’ inclusion in the FTSE4Good index series as an indicator of sustainability performance, a quasi-natural experiment shows that sustainability has a beneficial effect on firms’ long-term financial performance. Our findings show a notable rise in the companies’ profitability following their addition to the sustainability index. Additionally, companies that are part of the sustainability index are considered to have higher value compared to firms that are not part of a sustainability benchmark.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/20430795.2024.2401357 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:jsustf:v:15:y:2025:i:3:p:666-687

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TSFI20

DOI: 10.1080/20430795.2024.2401357

Access Statistics for this article

Journal of Sustainable Finance & Investment is currently edited by Dr Matthew Haigh

More articles in Journal of Sustainable Finance & Investment from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().