ESG/Green Investment and Allocation of Portfolio Assets

• Yoshino, Naoyuki ^[1] ; Yuyama, Tomonori ^[2]
  1. [1] Keio University

     Keio University

     Japón

     
  2. [2] Financial Research Center and Director, Macroeconomic and Market Analysis Office, Financial Services Agency, Japan
• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº 3, 2021 (Ejemplar dedicado a: SUSTAINABLE ECONOMICS)
• Idioma: inglés
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• Resumen

  • This article examines the current portfolio allocation in ESG and Green projects. Traditional investments focus on rates of return and risks associated with investment. Environmental, Social and Governance (ESG) or Green factors are additional components that investors have to pay attention to. Environmental protection is very important. However, as we see the current different definitions of ESG or Green factors lead to distorted allocations in portfolio investments. In order to bring portfolio allocations to a desirable direction, global taxation on pollution or creation of an accurate Green credit rating based on emissions of various pollutants are recommended.