Publications

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January 2019 (Revised February 2020)
Case

Should a Pension Fund Try to Change the World? Inside GPIF's Embrace of ESG

By: Rebecca Henderson, George Serafeim, Josh Lerner and Naoko Jinjo

In the fall of 2018, Hiro Mizuno, the Chief Investment Officer (CIO) of GPIF, the Japanese Government Pension Fund, was reflecting on his efforts to integrate Environmental, Social and Governance (ESG) issues into every aspect of GPIF’s portfolio. His efforts ranged... View Details

Keywords: Pension Funds; ESG (Environmental, Social, Governance) Performance; Investment Funds; Environmental Sustainability; Social Issues; Governance; Leading Change; Economy; Performance Improvement; Japan

2018
Working Paper

Corporate Sustainability: A Strategy?

By: George Serafeim

We explore the conditions under which firms maintain their competitive advantage through sustainability-based differentiation when faced with imitation pressures by industry peers. We document growing intraindustry convergence on sustainability actions over time for... View Details

Keywords: Sustainability; Corporate Performance; Industry Analysis; CSR; ESG; ESG (Environmental, Social, Governance) Performance; Environment; Social Responsibility; Strategy And Execution; Corporate Social Responsibility and Impact; Environmental Sustainability; Strategy; Performance; Corporate Strategy

2019
Chapter

Teams and Team Effectiveness in Health Services Organizations

By: Bruce J. Fried and Amy C. Edmondson

Book Abstract: Completely updated to address the challenges faced by modern health care organizations, this edition of Shortell and Kaluzny's Health Care Management: Organization Design and Behavior offers a more global perspective on how the United States and... View Details

Keywords: Groups and Teams; Performance Effectiveness; Health; Health Industry

Third Quarter 2018
Article

Why and How Investors Use ESG Information: Evidence from a Global Survey

By: Amir Amel-Zadeh and George Serafeim

Using survey data from a sample of senior investment professionals from mainstream (i.e., not SRI funds) investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. Relevance to... View Details

Keywords: ESG; ESG (Environmental, Social, Governance) Performance; Sustainability; Investment Management; Investment Strategy; Metrics; Standard Setting; Accounting Standards; Finance; Investment; Information; Environmental Sustainability; Governance; Performance Effectiveness; Strategy

January 2018
Case

Environmental Technology Fund Partners and E-Leather

By: Vikram S. Gandhi and Aldo Sesia

It is 2014 and Environmental Technologies Fund (ETF) Partners, a UK-based venture capital firm, has an opportunity to invest in a privately held UK company that manufactured engineered composition leather extracted from waste leather using an environmentally friendly... View Details

Keywords: Sustainability; Venture Capital; Investment Strategy; Investment; Strategy; Ownership; Valuation; Energy Conservation; Equity; Technological Innovation; Environmental Sustainability; Performance Efficiency; Manufacturing Industry; Financial Services Industry; United Kingdom

2017
Working Paper

Creating the Market for Organic Wine: Sulfites, Certification, and Green Values

By: Geoffrey Jones and Emily Grandjean

This working paper examines the history of organic wine, which provides a case study of failed category creation. The modern organic wine industry emerged during the 1970s in the United States and Western Europe, but it struggled to gain traction compared to other... View Details

Keywords: Product Launch; Failure; Problems and Challenges; Complexity; Governing Rules, Regulations, and Reforms; Agriculture and Agribusiness Industry; Food and Beverage Industry

November 2017 (Revised April 2019)
Case

Summa Equity: Building Purpose-Driven Organizations

By: George Serafeim and David Freiberg

In 2015, Reynir Indahl left top Nordic private equity firm Altor Equity Partners to found Summa Equity (Summa). After long contemplation following the financial crisis, Indahl was convinced the financial system was producing negative externalities and that the current... View Details

October 2017 (Revised October 2022)
Case

JetBlue: Relevant Sustainability Leadership (A)

By: George Serafeim and David Freiberg

In 2017, JetBlue, the airline founded on the mission to “bring humanity back to air travel,” was considering becoming one of the first companies to report its sustainability performance according to the Sustainability Accounting Standards Board (SASB) standards. SASB... View Details

Article

Managing Climate Change: Lessons from the U.S. Navy

By: Forest Reinhardt and Michael W. Toffel

The U.S. Navy operates on the front lines of climate change. It manages tens of billions of dollars in assets on every continent and on every ocean, which take many years to design and build and then have decades of useful life. This means that it needs to understand... View Details

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2018
Working Paper

How Scheduling Can Bias Quality Assessment: Evidence from Food Safety Inspections

By: Maria Ibanez and Michael W. Toffel

Many production processes are subject to inspection to ensure they meet quality, safety, and environmental standards imposed by companies and regulators. Inspection accuracy is critical to inspections being a useful input to assessing risks, allocating quality... View Details

Keywords: Assessment; Bias; Inspection; Scheduling; Econometric Analysis; Empirical Research; Regulation; Health; Food; Safety; Quality; Performance Consistency; Performance Evaluation; Food and Beverage Industry; Service Industry

2017
Working Paper

Why and How Investors Use ESG Information: Evidence from a Global Survey

By: Georgios Serafeim

Using survey data from a sample of senior investment professionals from mainstream (i.e., not SRI funds) investment organizations, we provide insights into why and how investors use reported environmental, social, and governance (ESG) information. The primary reason... View Details

Keywords: Investment Management; Sustainability; ESG; ESG (Environmental, Social, Governance) Performance; Investment Fund; Investment Strategy; Corporate Accountability; Activist Shareholder; Engagement; Environment; Climate Change; Customers; Customer Satisfaction; Employee Engagement; Global Warming; Investment; Decision Making; Environmental Sustainability; Performance Expectations

Article

ESG Integration in Investment Management: Myths and Realities

By: Sakis Kotsantonis, Christopher Pinney and George Serafeim

The authors’ aim in this article is to set the record straight on the financial performance of sustainable investing while also correcting a number of other widespread misconceptions about this rapidly growing set of principles and methods. Myth Number 1:... View Details

Keywords: ESG; Sustainability; Investment Management; Finance; Corporate Social Responsibility; Integrated Corporate Reporting; Corporate Social Responsibility and Impact; Investment; Environmental Sustainability; Corporate Governance

September 2016
Article

The Effect of Target Difficulty on Target Completion: The Case of Reducing Carbon Emissions

By: Ioannis Ioannou, Shelley Xin Li and George Serafeim

Targets are an integral component of management control systems and play a significant role in achieving desirable performance outcomes. We focus on a key environmental performance objective—reduction of carbon emissions—as a setting in which to examine how target... View Details

Keywords: Sustainability; Target-setting; Management Accounting; Management Accounting And Control Systems; Control Systems; Sustainable Development; Environment; Goals and Objectives; Climate Change; Management Systems; Accounting; Environmental Sustainability

2016
Working Paper

Shareholder Activism on Sustainability Issues

By: Jody Grewal, George Serafeim and Aaron Yoon

Shareholder activism on sustainability issues has become increasingly prevalent over the years, with the number of proposals filed doubling from 1999 to 2013. We use recent innovations in accounting standard setting to classify 2,665 shareholder proposals that address... View Details

Keywords: Sustainability; Activism; Activist Investors; Activist Shareholder; Corporate Social Responsibility; Environment; Corporate Performance; Corporate Accountability; Corporate Social Responsibility and Impact; Performance; Environmental Sustainability; Corporate Governance; Business and Shareholder Relations; Investment Activism

March 22, 2016
Article

The Globalization of Corporate Environmental Disclosure: Accountability or Greenwashing?

By: Christopher Marquis, Michael W. Toffel and Yanhua Zhou

This article is a layman summary of "Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing," published in Organization Science 27, no. 2 (March–April 2016): 483–504. View Details

Keywords: Reporting; Environmental Performance; Civil Society; Corporate Disclosure; Integrated Corporate Reporting; Corporate Social Responsibility and Impact; Civil Society or Community; Environmental Sustainability

March–April 2016
Article

Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing

By: Christopher Marquis, Michael W. Toffel and Yanhua Zhou

Under increased pressure to report environmental impacts, some firms selectively disclose relatively benign impacts, creating an impression of transparency while masking their true performance. We identify key company- and country-level factors that limit firms' use of... View Details

Keywords: Disclosure Strategy; Disclosure; Environmental Performance; Environmental Strategy; Environment; Symbolic; Reporting; Corporate Disclosure; Integrated Corporate Reporting; Corporate Social Responsibility and Impact

September 2015
Case

Eco7: Launching a New Motor Oil

By: John Quelch and Sunru Yong

Aaron Jonnerson, vice president of marketing at the automotive division of Avellin, must make marketing mix decisions for the launch of Eco7, a new environmentally-friendly motor oil. The company's performance has been mediocre, shareholder pressure is increasing, and... View Details

Keywords: Distribution Channels; Environmental Sustainability; Product Launch; Transportation; Energy Sources; Auto Industry

December 2014
Supplement

Aspen Skiing Company Video Supplement

By: Michael W. Toffel

Having begun improving the environmental performance of its own operations, Aspen Skiing Company is considering "greening" its supply chain and lobbying for greenhouse gas regulations. A world renowned ski resort vulnerable to global climate change, Aspen's activities... View Details

Keywords: Conflict of Interests; Climate Change; Supply Chain Management; Corporate Social Responsibility and Impact; Environmental Sustainability; Tourism Industry; Entertainment and Recreation Industry; Aspen