Do sustainability signals diverge? An analysis of labeling schemes for socially responsible investments *
Résumé
Several labels for sustainable investment funds sponsored by government and nonprofit
organizations (GNPOs) have emerged in Europe. This paper examines the coherence of
the signals sent by these sustainable labels versus those from the private sector. While
some GNPO-labeled funds are perceived as bearing high Environmental, Social and
Governance (ESG) risks, we find that labeled funds are more likely to be assessed as top
ESG funds by private rating providers. Furthermore, equity funds with governmental and
multiple labels are more likely to show better ESG ratings. Additionally, GNPO-labeled
funds show greater alignment with article 9 of the Sustainable Finance Disclosure
Regulation and tend to exhibit ESG terminology in their name, consistent with internal
signals of sustainability coherence with GNPO labels. However, our research draws
attention to the existence of sustainable signals that are not always coherent,
jeopardizing their role as efficient tools for promoting sustainability.
Mots clés
asymmetric information government labelling nonprofit organizations SFDR socially responsible investments sustainable finance third-party certifications
asymmetric information
government
labelling
nonprofit organizations
SFDR
socially responsible investments
sustainable finance
third-party certifications
Domaines
FinanceOrigine | Fichiers produits par l'(les) auteur(s) |
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