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Andrew Karolyi, Charles Field Knight Dean of the Cornell SC Johnson College of Business, delivered this special address to the 2024 Eighth Annual Shanghai Green Finance Conference.

Concerns about ESG investing reveal that ESG is subjective, and ESG performance is difficult to substantiate through measurement and comparison. In this talk, Andrew Karolyi discusses accelerating growth in assets related to sustainability, and shares the results of a survey on the impact of sustainable investing. Overall, he and his colleagues find wide variation and confusion about best practices in the integration of ESG into valuation. New regulations are on the horizon, however, and Karolyi et al. stress the need for a “better valuation framework to integrate ESG that emphasizes modeling and forecasting cash flows over discount rates.”

Read more about SC Johnson College of Business faculty and research here.

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