RT Journal Article
SR Electronic
T1 ESG Investing: A Decision-Making Paradox?
JF The Journal of Impact and ESG Investing
FD PMR
SP 7
OP 30
DO 10.3905/jesg.2022.1.054
VO 3
IS 1
A1 Omrane Guedhami
A1 David Louton
A1 Hakan Saraoglu
A1 Ying Zheng
YR 2022
UL https://pm-research.com/content/3/1/7.abstract
AB Debates about the attributes of environmental, social, and governance (ESG) investing are ongoing. The definitions, integration methods, performance outcomes, and data consistency are all developing. Against this backdrop, we explore whether ESG investing constitutes a decision-making paradox in which selecting a desirable set of stocks for inclusion in an ESG portfolio simultaneously requires adopting a desirable decision-making method to select those stocks. Comparing the results from two multicriteria decision-making methods for selecting ESG portfolio stocks, we illustrate the sensitivity of the resulting selections to various approaches. We recommend a series of practical steps for resolving the paradox.