IDEAS home Printed from https://ideas.repec.org/p/chf/rpseri/rp2418.html
   My bibliography  Save this paper

Green Innovations - Do patents pay off for the environment or for the investors?

Author

Listed:
  • Malte Schlosser

    (University of Zurich)

  • Ester Trutwin

    (University of Zurich)

  • Thorsten Hens

    (University of Zurich - Department of Banking and Finance; Norwegian School of Economics and Business Administration (NHH); Swiss Finance Institute)

Abstract

We examine whether a company’s green and high–quality innovative strength is related to its environmental impact and what the implications are for its financial performance. By analyzing WIPO patent data and MSCI ESG data, we reveal a notable positive and statistically significant impact of possessing more green patents on a company’s carbon emissions score. Further, we find that the patent related increase in carbon emissions score is driven by the high–quality green patents. Our analysis validates the positive influence of green and high–quality innovation strength on both the E and ESG scores. Despite the positive impact on the environment, investors do not need to sacrifice returns. Investment strategies which invest in companies within the top decile of green patents or green patents ratio do not perform worse than the market.

Suggested Citation

  • Malte Schlosser & Ester Trutwin & Thorsten Hens, 2024. "Green Innovations - Do patents pay off for the environment or for the investors?," Swiss Finance Institute Research Paper Series 24-18, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp2418
    as

    Download full text from publisher

    File URL: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4741919
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    WIPO; Green Innovations; Carbon Emissions Score; ESG Scores; Correlation Analysis; Performance Analysis; Fama–French Analysis;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:chf:rpseri:rp2418. 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: Ridima Mittal (email available below). General contact details of provider: https://edirc.repec.org/data/fameech.html .

    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.