ESG Investments : exploring the impact of sustainability on financial performance
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- Master Thesis 
In this thesis, we investigate the relationship between sustainability, measured by ESG score, and financial performance. The time period of the study is 2008-2018. We perform three different analyses. The first is a global analysis of all 11 years. In the second analysis, we split the sample into two sub-periods. Finally, we investigate the relationship for companies in the United States and Europe separately. We find that there is no indication of a positive relationship. Moreover, the results suggest that the relationship is more negative than neutral. This is especially evident globally for small companies, globally in the period 2009-2013, as well as for American companies. We also look at the relationship at the industry level and find that there are differences between industries. The findings in Health Care suggest that investing in sustainable companies destroys value. In Real Estate and Technology on the other hand, the results demonstrate a neutral relationship. Consequently, sustainable investments in these industries will neither create or destroy value.