Are All ESG Funds Created Equal? Only Some Funds Are Committed

Michelle Lowry, Pingle Wang, Kelsey D. Wei

2023 | Academic | Funds, Sustainable Investing

ESG funds are not all equal: there is significant heterogeneity in incentives of fund managers to engage with portfolio firms. We argue that differences in incentives affect ESG-related information acquisition, investment strategies, engagement activities, and impact of ESG funds...