Going ESG: The Economic Value of Adopting an ESG Policy

Maya Finger, Mosi Rosenboim

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

Does having an environmental, social, and governance (ESG) policy have an impact on stakeholders? This research presents a unique model that allows us to measure the economic value of adopting an ESG policy for financial institutions’ stakeholders. Using the results of a questionnaire distributed among financial institution employees and customers, we find that, on average, employees are willing to forgo 11% of their salary to work for a company that has adopted and implemented such a policy. In addition, customers are willing to pay 47% more in management fees to do business with financial institutions that have such a policy. To our knowledge, this is the first study that quantifies the benefits for financial institutions stakeholders of adopting an ESG policy.

Original languageEnglish
Article number13917
JournalSustainability (Switzerland)
Volume14
Issue number21
DOIs
StatePublished - 1 Nov 2022

Keywords

  • ESG
  • additional value
  • customers
  • employees
  • financial institutions
  • impact

ASJC Scopus subject areas

  • Computer Science (miscellaneous)
  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Building and Construction
  • Environmental Science (miscellaneous)
  • Energy Engineering and Power Technology
  • Hardware and Architecture
  • Computer Networks and Communications
  • Management, Monitoring, Policy and Law

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