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The integration of Artificial Intelligence into sustainable finance represents a transformative paradigm shift in how Environmental, Social, and Governance factors are analyzed, predicted, and incorporated into investment decisions. This…

Computational Engineering, Finance, and Science · Computer Science 2026-05-26 Eduardo C. Garrido-Merchán , Esther Vaquero Lafuente , Elisa Aracil

Continued interest in sustainable investing calls for an axiomatic approach to measures of risk and reward that focus not only on financial returns, but also on measures of environmental and social sustainability, i.e. environmental,…

Mathematical Finance · Quantitative Finance 2026-02-19 Gabriele Torri , Rosella Giacometti , Darinka Dentcheva , Svetlozar T. Rachev , W. Brent Lindquist

Sustainable Investing identifies the approach of investors whose aim is twofold: on the one hand, they want to achieve the best compromise between portfolio risk and return, but they also want to take into account the sustainability of…

Portfolio Management · Quantitative Finance 2023-12-19 Francesco Cesarone , Manuel Luis Martino , Federica Ricca , Andrea Scozzari

In this article, we present a novel approach for the construction of an environment-friendly green portfolio using the ESG ratings, and application of the modern portfolio theory to present what we call as the ``green efficient frontier''…

Portfolio Management · Quantitative Finance 2023-05-29 Shashwat Mishra , Rishabh Raj , Siddhartha P. Chakrabarty

Artificial Intelligence (AI) is a widely developed and adopted technology across entire industry sectors. Integrating environmental, social, and governance (ESG) considerations with AI investments is crucial for ensuring ethical and…

Artificial Intelligence · Computer Science 2024-08-07 Sung Une Lee , Harsha Perera , Yue Liu , Boming Xia , Qinghua Lu , Liming Zhu , Jessica Cairns , Moana Nottage

The widespread confusion among investors regarding Environmental, Social, and Governance (ESG) rankings assigned by rating agencies has underscored a critical issue in sustainable investing. To address this uncertainty, our research has…

Portfolio Management · Quantitative Finance 2025-09-23 Jiayue Zhang , Ken Seng Tan , Tony S. Wirjanto , Lysa Porth

This paper introduces and defines a novel concept in sustainable investing, termed crosswashing, and explore its impact on ESG (Environmental, Social, and Governance) ratings through quantitative analysis using a Multi-Criteria Decision…

General Economics · Economics 2024-09-13 Bertrand Kian Hassani , Yacoub Bahini

This chapter explores the convergence of two major developments: the rise of environmental, social, and governance (ESG) investing and the exponential growth of artificial intelligence (AI) technology. The increased demand for diverse ESG…

Artificial Intelligence · Computer Science 2025-05-20 Georgios Pavlidis

Many studies have examined the connection between the intention to start a business and environmental values. However, there still needs to be more knowledge in the extant literature about how climate change campaigns influence sustainable…

General Economics · Economics 2024-07-25 Muhammad Rofiqul Islam , Abdullah Al Mehdi

Environmental, Social, and Governance (ESG) data provides non-financial insights into corporations. In this study, we aim to identify relevant ESG raw variables to assess financial risk, measured by logarithmic volatility of return. We…

Risk Management · Quantitative Finance 2026-05-05 Zhi Chen , Zachary Feinstein , Ionut Florescu

In this work we propose a framework to construct Market-Implied Sustainability (MIS) scores for individual firms by exploiting fund-level sustainability classifications and granular portfolio holdings. The central idea is that the relative…

Portfolio Management · Quantitative Finance 2026-03-17 Rosella Giacometti , Gabriele Torri , Marco Bonomelli , Davide Lauria

Sustainable innovation requires in-time development, diversification and transformation of business models from one to another. Business model innovation, development and transformation for sustainability incorporates economic,…

Social and Information Networks · Computer Science 2021-03-31 Iqra Sadaf Khan , Jukka Majava

For organizations to survive and flourish in the long term, innovation and novelty must be continually introduced, which is particularly true in today's rapidly changing world. This raises a variety of ethical and sustainability…

Computers and Society · Computer Science 2025-05-06 Maria Fay , Frederik F. Flöther

Over the past years, topics ranging from climate change to human rights have seen increasing importance for investment decisions. Hence, investors (asset managers and asset owners) who wanted to incorporate these issues started to assess…

Artificial Intelligence · Computer Science 2021-09-22 Tim Krappel , Alex Bogun , Damian Borth

The burgeoning integration of Artificial Intelligence (AI) into Environmental, Social, and Governance (ESG) initiatives within the financial sector represents a paradigm shift towards more sus-tainable and equitable financial practices.…

Computers and Society · Computer Science 2024-03-12 Jun Xu

While material innovation can enable sustainable development, environmental and social impacts of emerging materials are often assessed only after design choices are "locked in." Here, we argue for a shift in perspective: life cycle…

Materials Science · Physics 2026-04-28 Rachel Woods-Robinson , Amalie Trewartha

Sustainable investing refers to the integration of environmental and social aspects in investors' decisions. We propose a novel methodology based on the Triangulated Maximally Filtered Graph and node2vec algorithms to construct an hedging…

Portfolio Management · Quantitative Finance 2024-03-15 Michele Azzone , Maria Chiara Pocelli , Davide Stocco

Incorporating environmental, social, and governance (ESG) considerations into systematic investments has drawn numerous attention recently. In this paper, we focus on the ESG events in financial news flow and exploring the predictive power…

Computational Finance · Quantitative Finance 2020-05-07 Tian Guo , Nicolas Jamet , Valentin Betrix , Louis-Alexandre Piquet , Emmanuel Hauptmann

Portfolio optimization involves determining the optimal allocation of portfolio assets in order to maximize a given investment objective. Traditionally, some form of mean-variance optimization is used with the aim of maximizing returns…

Artificial Intelligence · Computer Science 2024-03-26 Fernando Acero , Parisa Zehtabi , Nicolas Marchesotti , Michael Cashmore , Daniele Magazzeni , Manuela Veloso

Recently, environmental, social, and governance (ESG) has become an important factor in companies' sustainable development. Artificial intelligence (AI) is also a core digital technology that can create innovative, sustainable,…

General Economics · Economics 2023-12-01 Chenglin Qing , Shanyue Jin
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