DOI: 10.1002/bsd2.280 ISSN:

Risk–return spectrum of investment for going green: Evidence from Indian equity market

Pabitra Debnath, Soumyananda Dinda
  • Strategy and Management
  • General Economics, Econometrics and Finance
  • Development


This study investigates the risk–return spectrum of investment for going green and sustainability practice in India. This article analyses three sustainability focused index from Indian equity market viz. S&P BSE GREENEX, S&P BSE CARBONEX and S&P BSE ESG 100. Statistical and financial rates, ratios and latest five‐factor model of asset pricing are used for the said purpose. ESG 100 index turned out to be outperformer whereas the other two gave slightly less return than the market benchmark. Volatility is found to be similar to that of the market for all the indexes. Significant increment of wealth of green investors during and after the COVID‐19 pandemic period is another notable finding of the study. Results of this article indicate that investors are getting more return compared to market if they invest in stocks that perform well in sustainability criterion.

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