ESG Arbitrage and Environmental Outcomes

Examining whether REITs use ESG strategically and the real environmental consequences.

ESG Arbitrage and Environmental Outcomes in REITs

with Jianfu Shen, Louis T.W. Cheng, Kalok Chan and Eddie C.M. Hui

British Accounting Review — Under review

This study examines the role of environmental materiality in ESG strategies adopted by REITs. Strategic ESG practices are associated with better financial performance but have adverse environmental consequences, resulting in increased greenhouse gas emissions and environmental damage costs.