Does Sustainable Responsible Investment Cause Better Portfolio Performance: Concept Paper

Abstract

The aim of this paper is to examine the performance of portfolios that are constructed based on environmental, social and governance (ESG) scores. The financial industry's growing need for sustainable products indicates that interest in ESG and sustainable investing is set for the long haul. The subject has been debated for a while, and earlier research on the risk-adjusted return differential between conventional and sustainable funds has produced various findings. This study will be carried out in part because previous research has concentrated on capital markets that are bigger, mostly developed countries. There is a huge lack of research in the developing country context. The purpose of this study is to close the knowledge gap about how different fund types performed financially in a developing market. This study will select all developing countries in the South Asian region. According to the World Bank categorization, the following are the countries: Maldives, Sri Lanka, Bangladesh, Bhutan, India, Nepal, and Pakistan. Data will be collected using Bloomberg. Financial data collected will be analyzed using panel data regression analysis.