Browsing by Author "Savontaus, Loviisa"

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    Sustainable investing in the oil industry - Is it possible?
    (2022) Savontaus, Loviisa; Joenväärä, Juha; Rahoituksen laitos; Kauppakorkeakoulu; School of Business
    This thesis analyses if sustainability affects the returns on public oil companies listed in the USA. Tilting into the best-in-class companies of a brown industry is theoretically proven to improve investment returns and the ESG performance of a company. My hypothesis is based on the best-in-class theory that the most sustainable companies would have better performance than the least sustainable ones. If the hypothesis holds, tilting could be a potential sustainable investing strategy. I tested the hypothesis with USA based oil companies and analyzed their financial performance with time series regressions. The analysis demonstrated no significant difference between the companies, and I was not able to find evidence that sustainability affects the returns of the oil industry. These findings suggest that sustainably minded investor does not get added value from tilting.