...George Serafeim; Aaron S. Yoon ABSTRACT There is a growing interest to understand the business relevance of ESG issues, especially those related to the firm performance. We propose a framework to better understand the relationship between true and observed materiality and outline the associated...

... on materiality from the Sustainability Accounting Standards Board allowed the construction of corporate sustainability scales that reliably predicted stock returns. Their finding had immediate and broad impact, but it remains, in its authors' own words, just “first evidence.” Here, we further explore...