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May 2010

Reviews of the latest academic research on responsible investment

Welcome to the RI Digest, the monthly digest published by the PRI Academic Network to increase knowledge about responsible investment practices and opportunities.

This month's issue addresses how environmental, social or governance (ESG) factors affect credit ratings, bond yields and fixed income funds. Recent academic studies suggest that the impact of ESG factors should be on the radar of institutional investors, investment consultants and chief financial officers alike. Why? Because ESG factors protect against credit risk and can add value.

Suggestions of articles to be reviewed can be emailed to the RI Digest team, who will also be happy to answer any questions. Emails can be sent to  This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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# Article Title
1 Improved corporate governance leads to better corporate bond ratings
2 Insufficient corporate attention to environmental, social and governance issues results in higher bank loan costs
3 Firms that practice good employee relations gain better credit ratings
4 Investment in responsible fixed-income securities leads to portfolio outperformance