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ESG risks in times of Covid-19

Author

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  • Fabrizio Ferriani
  • Filippo Natoli

Abstract

This study analyzes whether investors take risks related to environmental, social and governance (ESG) factors into account when making portfolio decisions. We exploit the new Morningstar’s ESG risk indicators – introduced at the end of 2019 – to estimate the effect of ESG risk perception on investment fund flows. Our exercise, related to the early phase of the Covid-19 crisis when uncertainty skyrocketed, shows that investors have preferred low-ESG-risk funds, with environmental risks remaining a top concern.

Suggested Citation

  • Fabrizio Ferriani & Filippo Natoli, 2021. "ESG risks in times of Covid-19," Applied Economics Letters, Taylor & Francis Journals, vol. 28(18), pages 1537-1541, October.
  • Handle: RePEc:taf:apeclt:v:28:y:2021:i:18:p:1537-1541
    DOI: 10.1080/13504851.2020.1830932
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