Conflicting Objectives of ESG Funds: Evidence from Proxy Voting

When vote outcomes are uncertain, ESG funds tilt toward returns over environmental and social goals.

Tao Li, S. Lakshmi Naaraayanan, Kunal Sachdeva

Working paper, 2023

When vote outcomes are uncertain, ESG funds tilt toward returns over environmental and social goals.

ESG funds are more likely to vote against environmental and social proposals when the outcome is uncertain, suggesting they prioritize short-term returns over sustainability goals when the two conflict.

Awards: Semi-finalist, Best Paper, FMA Annual Conference, 2022

Paper
Cite
@techreport{li2023conflicting,
  title={Conflicting Objectives of {ESG} Funds: Evidence from Proxy Voting},
  author={Li, Tao and Naaraayanan, S. Lakshmi and Sachdeva, Kunal},
  year={2023},
  type={SSRN Working Paper},
  institution={Social Science Research Network},
  number={3760753},
  doi={10.2139/ssrn.3760753}
}

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