IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v84y2026ics0275531926000401.html

Exploring the climate resilience of ESG and conventional ETFs: Evidence from the European region

Author

Listed:
  • Trotta, Annarita
  • Piluso, Fabio
  • Strano, Eugenia
  • Ceraso, Danilo

Abstract

Given that growing inflows into ESG-labelled funds have increased significantly in recent years, as well as the ongoing evolving EU regulation on these, the (climate) resilience in ESG-labelled ETFs compared to their conventional peers is of considerable interest to academics, practitioners, and regulators. We explore if the equity ETFs in the European market are affected by climate change, putting emphasis on the equity ESG-labelled ETFs. After estimating the economic losses from extreme climate events by using the climate-related expected shortfall, we identify no significant resilience of the equity ESG-labelled ETFs compared to their conventional counterparties. We conclude that the current green labels under Articles 8 and 9 of the Sustainable Finance Disclosure Regulation (SFDR) have provided little reliability, and that there is a need for considering the geographical allocation in regulatory standards on the climate criteria of ESG-label funds to enhance potential future climate-induced volatility on these ETFs, as well as to offer important guidance for policy makers and finance professionals.

Suggested Citation

  • Trotta, Annarita & Piluso, Fabio & Strano, Eugenia & Ceraso, Danilo, 2026. "Exploring the climate resilience of ESG and conventional ETFs: Evidence from the European region," Research in International Business and Finance, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:riibaf:v:84:y:2026:i:c:s0275531926000401
    DOI: 10.1016/j.ribaf.2026.103313
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531926000401
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2026.103313?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:84:y:2026:i:c:s0275531926000401. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.