- 24 Nov 2020
- Working Paper Summaries
Accounting for Product Impact in the Consumer Finance Industry
A framework and method for measuring and monetizing product impact across industries, applying it to two competitors in the consumer finance space.
- 02 Nov 2020
- Working Paper Summaries
Accounting for Organizational Employment Impact
Impact-weighted accounting methodology standardizes previously disparate measures of impact, in this case the impact of employment. This paper’s methodology and analysis of Intel, Apple, Costco, and Merck shows the feasibility of measuring firm employment impact for insight into firm practices and performance. Closed for comment; Comment(s) posted.
- 08 Sep 2020
- Sharpening Your Skills
Capitalism Works Better When I Can See What You're Doing
Lower prices. More innovation. Better government. Transparency fuels the basic principles of competitive business and open government. Well, most of the time. Open for comment; Comment(s) posted.
- 07 Jul 2020
- Research & Ideas
Market Investors Pay More for Resilient Companies
During a market collapse, investors will pay up for companies considered resilient in their response, according to George Serafeim. Open for comment; Comment(s) posted.
- 12 Jun 2020
- Working Paper Summaries
Corporate Resilience and Response During COVID-19
Investors look for evidence during a market crisis that a company is resilient. This study includes findings that challenge the notion that companies need to adopt practices that hurt their employees because investors want them to do so.
- 08 May 2020
- Working Paper Summaries
Corporate Environmental Impact: Measurement, Data and Information
This paper proposes a methodology for investors, companies, or regulators to use established environmental resources, reasonably accessible in the public domain, to measure an organization’s environmental impact from operations. These measurements contain information that is different from environmental ratings widely used by investors and other stakeholders.
- 22 Apr 2020
- Research Event
How Investors Are Sizing Up Climate Change’s Risks—and Opportunities
What are the financial implications of rising seas and extreme weather? Asset managers and risk experts gathered at Harvard Business School to discuss how they’re evaluating climate risk in their portfolios. Open for comment; Comment(s) posted.
- 18 Feb 2020
- Working Paper Summaries
A Preliminary Framework for Product Impact-Weighted Accounts
Although there is growing interest in environmental, social, and governance measurement, the impact of company operations is emphasized over product use. A framework like this one that captures a product’s reach, accessibility, quality, optionality, environmental use emissions, and end of life recyclability allows for a systematic methodology that can be applied to companies across many industries.
- 23 Jan 2020
- Research & Ideas
Businesses Need a 'Catalyst' to Make CSR Practices Stick
Despite best intentions, many corporate social responsibility programs fail. One answer: Companies need community partners to sustain work over the long term, says Robert Kaplan. Open for comment; Comment(s) posted.
- 04 Dec 2019
- Working Paper Summaries
Pathways to Materiality: How Sustainability Issues Become Financially Material to Corporations and Their Investors
This paper provides a framework for understanding and predicting how environmental, social, and governance (ESG) issues become financially material.
- 04 Dec 2019
- Working Paper Summaries
Intelligent Design of Inclusive Growth Strategies
How companies, working with a catalyst, can redesign supply chains to achieve economic, environmental, and social returns.
- 23 Oct 2019
- Working Paper Summaries
Decarbonization Factors
This paper contributes to a growing knowledge base about how climate change impacts investor expectations, capital allocations and thereby pricing and returns. It provides actionable insights into how to decarbonize portfolios and evaluate the likely performance and carbon exposure differences across strategies.
- 25 Sep 2019
- Working Paper Summaries
Corporate Purpose and Firm Ownership
This study shows that corporate purpose varies greatly according to the nature of firm ownership, and these differences can be least partly explained by the choices and compensation of the CEOs. The greater the pay gap between CEOs and employees, the lower the sense of corporate purpose within the organization.
- 20 Aug 2019
- Cold Call Podcast
Should a Pension Fund Try to Change the World?
Can inclusivity, sustainability, and better governance boost economies? Rebecca Henderson and George Serafeim discuss the impact investing efforts of GPIF, Japan’s government pension fund. Open for comment; Comment(s) posted.
- 29 Jan 2019
- Research & Ideas
'Green Bonds' May Be Our Best Bet for Environmental Damage Control
The popularity of green bonds as a way to finance environmentally friendly projects is on the upswing, say Malcolm Baker and George Serafeim. Open for comment; Comment(s) posted.
- 22 Jan 2019
- Working Paper Summaries
Corporate Sustainability: A Strategy?
Between 2012 and 2017, companies within most industries adopted an increasingly similar set of sustainability practices. This study examines the interplay between common and strategic practices. This dynamic distinction helps for understanding whether and how sustainability practices can help companies establish a competitive advantage over time.
- 03 Jan 2019
- Working Paper Summaries
Financing the Response to Climate Change: The Pricing and Ownership of US Green Bonds
Green bonds are used for environmentally friendly purposes like renewable energy. Complementing previous research, this paper explores the US corporate and municipal green bond and shows that a subset of investors is willing to give up some return to hold green bonds.
- 03 Dec 2018
- Research & Ideas
How Companies Can Increase Market Rewards for Sustainability Efforts
There is a connection between public sentiment about a company and how the market rewards its corporate social performance, according to George Serafeim. Is your company undervalued? Open for comment; Comment(s) posted.
- 29 Oct 2018
- Working Paper Summaries
Public Sentiment and the Price of Corporate Sustainability
Public opinions from industry experts are important in the economy but it has not been clear how they affect the valuation of and returns to corporate activities. Using big data and machine learning, this paper analyzes how public sentiment influences the market pricing of firms’ sustainability activities and thereby the future stock returns of portfolios that integrate environmental, social, and governance data.
Accounting for Product Impact in the Airlines Industry
A systematic methodology for measuring product impact can be applied across a range of industries. Examining two competitor companies in the airlines industry, this study finds that analyzing each dimension of product impact allows for deeper understanding of each company’s business strategies.