Journal of Business Ethics

, Volume 103, Issue 2, pp 275–287

Green and Good? The Investment Performance of US Environmental Mutual Funds


DOI: 10.1007/s10551-011-0865-2

Cite this article as:
Climent, F. & Soriano, P. J Bus Ethics (2011) 103: 275. doi:10.1007/s10551-011-0865-2


Increased concern for the environment has increased the number of investment opportunities in mutual funds specialized in promoting responsible environmental attitudes. This article examines the performance and risk sensitivities of US green mutual funds vis-à-vis their conventional peers. We also analyze and compare this performance relative to other socially responsible investing (SRI) mutual funds. In order to implement this analysis, we apply a CAPM-based methodology and find that in the 1987–2009 period, environ- mental funds had lower performance than conventional funds with similar characteristics. However, if we focus on a more recent period (2001–2009), green funds achieved adjusted returns not significantly different from the rest of SRI and conventional mutual funds.

Key words

socially responsible investmentsmutual fundsperformance evaluationethical investingcorporate social responsibility

Jel Classification


Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  1. 1.Universitat De ValènciaValènciaSpain