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  • © 2021

Sustainable Investing

Beating the Market with ESG

Palgrave Macmillan
  • Explains why sustainable investments are profitable and can even beat the market

  • Provides both academic findings and practical models for assessing the sustainability of investees

  • Includes practical tools to make ESG analysis a part of investment analysis alongside case studies and expert interviews

  • Shows how investors can support companies in achieving positive impact through active engagement

Buying options

eBook USD 29.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-71489-5
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book USD 39.99
Price excludes VAT (USA)

This is a preview of subscription content, access via your institution.

Table of contents (12 chapters)

  1. Front Matter

    Pages i-xxv
  2. Basics of Sustainable Investing

    1. Front Matter

      Pages 1-1
    2. Motivation for Sustainable Investing: What Is the Purpose?

      • Hanna Silvola, Tiina Landau
      Pages 3-14
    3. Methods of Sustainable Investing

      • Hanna Silvola, Tiina Landau
      Pages 15-23
  3. Engaging with Investees

    1. Front Matter

      Pages 25-25
    2. Active Ownership

      • Hanna Silvola, Tiina Landau
      Pages 27-66
  4. Sustainability in Investment Analysis

    1. Front Matter

      Pages 67-67
    2. Sustainability as Part of Qualitative Analysis

      • Hanna Silvola, Tiina Landau
      Pages 69-92
    3. ESG Analysis Tools for Assessing Listed Shares

      • Hanna Silvola, Tiina Landau
      Pages 93-119
    4. Sustainability of Various Investment Products

      • Hanna Silvola, Tiina Landau
      Pages 121-152
  5. The Link Between Sustainability and Returns

    1. Front Matter

      Pages 153-153
    2. The Nordic Perspective on Integrating ESG

      • Hanna Silvola, Tiina Landau
      Pages 155-161
    3. Is Sustainable Investing Profitable?

      • Hanna Silvola, Tiina Landau
      Pages 163-175
    4. What Is the Profitability of Sustainability Based on?

      • Hanna Silvola, Tiina Landau
      Pages 177-193
  6. Sustainability Trends and the Future of ESG

    1. Front Matter

      Pages 195-195
    2. Changes in International Politics and Legislation

      • Hanna Silvola, Tiina Landau
      Pages 197-203
    3. Sustainability Trends and International Frameworks

      • Hanna Silvola, Tiina Landau
      Pages 205-230
    4. Global Investment Trends and Impacts on Sustainable Investing

      • Hanna Silvola, Tiina Landau
      Pages 231-237
  7. Back Matter

    Pages 239-241

About this book

“Sustainable Investing offers practical advice to market participants, with a variety of examples from investors and corporates who have dealt with the challenge of integrating Environmental, Social and Governance (ESG) aspects into their operations. The authors anchor these case studies in emerging research from academic finance, while providing readers with a critical lens to evaluate the strengths and weaknesses of what may sometimes appear to be contradictory conclusions. Sustainable Investing is an excellent resource for international investors, advisors, and corporates.”

Annie Bersagel, Portfolio Manager – ESG, Folketrygdfondet, Government Pension Fund Norway

 

“A must-read to understand the tectonic shift of sustainable finance and how to be a part of it– through detailed case-studies and first-hand practitioners’ input, this book takes on the challenge of making sustainable investments clear and actionable.”

Carole Crozat, CFA, Head of Thematic Research for Sustainable Investments, BlackRock

 

Most of what is described as sustainability investing today is very far from the mark. If we are to build a truly regenerative economy, across all dimensions of value creation, we must transform not just financial markets but economics itself. This timely book by Hanna Silvola and Tiina Landau is a welcome guide to an increasingly complex landscape of risk and opportunity.”

John Elkington, Author of Green Swans: The Coming Boom in Regenerative Capitalism

 

“Pension investors want to make sure that their pension funds are able to provide their participants with a good pension. At the same time, they also want to contribute to a sustainable world with good quality of life, for current and future generations. Sustainable Investing provides a comprehensive overview with many practical cases that inspire to take action.”

Els Knoope, Senior Portfolio Manager, APG Asset Management

 

"This book provides excellent advice for beginners in sustainable investing and also for those more advanced. The concrete examples are helpful and not easy to come by yet in the public space. Recommended reading for investors and the interested public alike.”

Eila Kreivi, Director, Head of Capital Markets, European Investment Bank

 

This book reviews the latest methods of sustainable investing and financial profit making and describes how ESG (Environmental, Social, Governance) analysis can identify future business opportunities and manage risk to achieve abnormal returns. Megatrends such as climate change, sustainable development and digitalisation increase uncertainty and information asymmetry and have an impact on the future returns on investments.  From a profit perspective, it is largely about how ESG factors affect the long-term value added by companies and the valuation of companies in the financial markets. Although sustainability provides an opportunity for abnormal returns, this phenomenon must be considered in a critical light. The book describes the risks and limitations associated with the accountability and availability of ESG data and tools.

This book provides both academic findings and practical models for assessing the sustainability of investees and introduces practical tools and methods to make ESG analysis practice. It focuses on the ESG analysis of equity investments and fund investments in institutional investment organizations and provides a handbook for all investment analysts who are involved with investment decisions. Readers will benefit from understanding the methods, opportunities and challenges that professionals use in their ESG analysis with cases, interviews and practical tools for both institutional and private investors. 

Tiina Landau is an internationally recognized sustainability expert and Certified European Financial Analyst (CEFA). She currently works as Sustainability Manager at Neste Corporation, embedding sustainability considerations into new business models and supply chains. Previously she served as Senior Responsible Investment Officer at Ilmarinen, a pension investor with 50 billion euros in investment assets and was recognized as a top 50 contributor globally in responsible investments among asset owners in the IRRI survey 2017, voted by professionals in 43 countries. In addition, she has previously worked on sustainable investing at OP Financial Group (80 billion euros in investment assets) and in management consulting at KPMG. She has extensive experience as a speaker in media and seminars and also writes a column in the Finnish financial newspaper Kauppalehti.

Hanna Silvola is an Associate Professor of Accounting at Hanken School of Economics, Finland. Her research interests are in sustainable investing and in measuring, reporting and assuring corporate sustainability information in strategic decision-making. She has international experience from the London School of Economics, UK, University of Stanford, USA, Monash University, Australia and the University of New South Wales, Australia. Dr. Silvola has published on a range of topics in accounting in journals such as Accounting, Organizations and SocietyManagement Accounting Research; Journal of Small Business Management and Journal of Management Accounting Review. She has comprehensive experience as a speaker in media and executive education.

Keywords

  • ESG
  • sustainability
  • sustainable investing
  • market return
  • climate change
  • ESG investing
  • investment analysis
  • risk management
  • financial market development

Reviews

“An excellent book to start with. … Filled with useful case studies on companies and investors, the book discusses relevant recent trends, initiatives and approaches. The reader comes away with useful possibilities to consider … . These case studies are explicitly detailed and applicable for readers, making the book a valuable resource on its own. … Silvola and Landau examine this well, especially from a public equity perspective, in a clear and concise manner … .” (Cary Krosinsky, responsible-investor.com, September  22, 2021)

“This book provides both academic findings and practical models for assessing the sustainability of investees and introduces practical tools and methods to make ESG analysis practice. It … provides a handbook for all investment analysts who are involved with investment decisions. Readers will benefit from understanding the methods, opportunities and challenges that professionals use in their ESG analysis with cases, interviews and practical tools for both institutional and private investors.” (investesg.eu, September 14, 2021)

“Filled with useful case studies on companies and investors, the book discusses relevant recent trends, initiatives and approaches. The reader comes away with useful possibilities to consider, but also a sense of how much more there is to do and an understanding of why there are so many divergent approaches by investors being taken today.” (Cary Krosinksy for Responsible Investor)

Sustainable Investing offers practical advice to market participants, with a variety of examples from investors and corporates who have dealt with the challenge of integrating Environmental, Social and Governance (ESG) aspects into their operations. The authors anchor these case studies in emerging research from academic finance, while providing readers with a critical lens to evaluate the strengths and weaknesses of what may sometimes appear to be contradictory conclusions. Sustainable Investing is an excellent resource for international investors, advisors, and corporates.” (Annie Bersagel, Portfolio Manager – ESG, Folketrygdfondet, Government Pension Fund Norway) 

“A must-read to understand the tectonic shift of sustainable finance and how to be a part of it– through detailed case-studies and first-hand practitioners’ input, this book takes on the challenge of making sustainable investments clear and actionable.” (Carole Crozat, CFA, Head of Thematic Research for Sustainable Investments, BlackRock) 

“Most of what is described as sustainability investing today is very far from the mark. If we are to build a truly regenerative economy, across all dimensions of value creation, we must transform not just financial markets but economics itself. This timely book by Hanna Silvola and Tiina Landau is a welcome guide to an increasingly complex landscape of risk and opportunity.” (John Elkington, Author of Green Swans: The Coming Boom in Regenerative Capitalism) 

“Pension investors want to make sure that their pension funds are able to provide their participants with a good pension. At the same time, they also want to contribute to a sustainable world with good quality of life, for current and future generations. Sustainable Investing provides a comprehensive overview with many practical cases that inspire to take action.” (Els Knoope, Senior Portfolio Manager, APG Asset Management) 

“This book provides excellent advice for beginners in sustainable investing and also for those more advanced. The concrete examples are helpful and not easy to come by yet in the public space. Recommended reading for investors and the interested public alike.” (Eila Kreivi, Director, Head of Capital Markets, European Investment Bank)

Authors and Affiliations

  • Hanken School of Economics, Helsinki, Finland

    Hanna Silvola

  • Helsinki, Finland

    Tiina Landau

About the authors

Tiina Landau is an internationally recognized sustainability expert and Certified European Financial Analyst (CEFA). She currently works as Sustainability Manager at Neste Corporation, embedding sustainability considerations into new business models and supply chains. Previously she served as Senior Responsible Investment Officer at Ilmarinen, a pension investor with 50 billion euros in investment assets and was recognized as a top 50 contributor globally in responsible investments among asset owners in the IRRI survey 2017, voted by professionals in 43 countries. In addition, she has previously worked on sustainable investing at OP Financial Group (80 billion euros in investment assets) and in management consulting at KPMG. She has extensive experience as a speaker in media and seminars and also writes a column in the Finnish financial newspaper Kauppalehti.

Hanna Silvola is an Associate Professor of Accounting at Hanken School of Economics, Finland. Her research interests are in sustainable investing and in measuring, reporting and assuring corporate sustainability information in strategic decision-making. She has international experience from the London School of Economics, UK, University of Stanford, USA, Monash University, Australia and the University of New South Wales, Australia. Dr. Silvola has published on a range of topics in accounting in journals such as Accounting, Organizations and SocietyManagement Accounting Research; Journal of Small Business Management and Journal of Management Accounting Review. She has comprehensive experience as a speaker in media and executive education.


Bibliographic Information

  • Book Title: Sustainable Investing

  • Book Subtitle: Beating the Market with ESG

  • Authors: Hanna Silvola, Tiina Landau

  • DOI: https://doi.org/10.1007/978-3-030-71489-5

  • Publisher: Palgrave Macmillan Cham

  • eBook Packages: Economics and Finance, Economics and Finance (R0)

  • Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021

  • Hardcover ISBN: 978-3-030-71488-8

  • eBook ISBN: 978-3-030-71489-5

  • Edition Number: 1

  • Number of Pages: XXV, 241

  • Number of Illustrations: 22 illustrations in colour

  • Topics: Financial Services, Risk Management, Development Economics, Development Studies

Buying options

eBook USD 29.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-71489-5
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book USD 39.99
Price excludes VAT (USA)