ABSTRACT
Despite a growing body of literature, there is still no consensus on the effects of firm sustainable performance (assessed through the so-called environmental, social and governance (ESG) criteria) on their financial returns. Empirical research started in the late 1990s, while theoretical frameworks have been developed recently. This paper reconciles previous empirical evidence with recent theories and provides a classification of existing empirical work regarding these theories. We provide a guide for academics, practitioners, regulators and policy-makers to understand the financial impact of sustainable investing and the ways to enhance it.
