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Socially responsible investing and multinationals' environmental harm: Evidence from global remote sensing data

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  • Gianinazzi, Virginia
  • Girard, Victoire
  • Lehlali, Mehdi
  • Prado, Melissa

Abstract

We study how socially responsible investment (SRI) affects multinational firms’ environmental footprint using satellite measures of vegetation health around 52,806 facilities in 124 countries, combined with institutional ownership data from 2006 to 2020. We identify SRI effects using two asset-manager-level designs and within-firm changes in responsible ownership. Higher SRI ownership improves vegetation health, but these improvements are concentrated around facilities in OECD countries, while vegetation health deteriorates around non-OECD facilities of the same firms. The asymmetry is strongest among investors reporting advanced stewardship practices. Our findings suggest that investor stewardship and public regulation are complementary in shaping firms’ environmental behavior.

Suggested Citation

  • Gianinazzi, Virginia & Girard, Victoire & Lehlali, Mehdi & Prado, Melissa, 2024. "Socially responsible investing and multinationals' environmental harm: Evidence from global remote sensing data," CEPR Discussion Papers 19611, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:19611
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    Cited by:

    1. is not listed on IDEAS
    2. Giulia Fontanelli, 2026. "Eco-Innovation and Firm Performance: The Role of Circular Economy Investments and Human Capital among SMEs in Emilia-Romagna," SEEDS Working Papers 1126, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Jun 2026.

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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