“A new paper co-authored by Professor Edward Watts examines how retail investors trade after news about a public company’s environmental, social, and governance activity. The findings offer clues about how investors weigh these factors.”

[COMMENTARY] I think this quote from the article (and paper) sums up the findings of this research: “Investors treat ESG information like they do any other information that might affect their returns. Quoting Alex Edmans of the London Business School, the authors write that “ESG is both extremely important and nothing special.” They conclude that bans on considering ESG may be “misguided” and “violate fiduciary obligations.”
Investors Care About ESG-Related News—When It Impacts Returns‌, by Rebecca Beyer, December 5, 2024, Yale Insights, USA.