THE ENVIRONMENTAL IMPACT OF SUSTAINABLE INVESTMENT REGULATION: AN EVALUATION OF THREE ESG POLICIES IN THE UNITED STATES AND EUROPEAN UNION
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2022-12
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Abstract
The practice of weighting Environmental, Social, and Governance (ESG) risks in investing is thought to be critical in combating climate change by creating incentives for corporations to reduce their greenhouse gas (GHG) emissions. But existing literature lacks evidence of environmental-specific impact of regulation on corporate ESG performance and disclosures. This article reviews data on carbon dioxide (CO2) emissions between the years 1750 and 2020 in the United States and the 28 countries of the European Union to assess the impact of ESG regulatory policies. Findings show that the policies are associated with a decrease in CO2 emissions when controlling for changes in population, gross domestic product, and other country-specific attributes.
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Environmental Impact, Climate Change, Greenhouse Gas Emissions, Carbon Emissions, Sustainable Investment Regulation, Green Investing, Policy Impact, ESG (Environmental, Social, and Governance), Corporate Social Responsibility