ESG Investing: Key Principles and Performance Insights

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Correction history

Every accepted correction to this page is recorded with the exact change, so readers can see how the page improved over time.

1. 28 July 2026 · corrected by Emir Baycan

   Corrected five data and regulatory claims: replaced the single '$35 trillion by 2022' figure with the GSIA's actual reporting (about $35T for 2020 and about $30T in the 2022 review as of end-2021 ex-Japan, the decline reflecting stricter definitions); corrected the Khan, Serafeim, and Yoon (2016, The Accounting Review) study from an 'improvement' study with a 3-6% outperformance figure to its actual design (firms with strong versus poor ratings on financially material issues); described SFDR accurately as a disclosure regime (Article 6 requires disclosure about sustainability-risk integration, not 'no integration'); updated the SEC climate-disclosure rules to reflect that final rules were adopted March 6, 2024, stayed in April 2024, and moved toward rescission by 2025-2026; and updated the CSRD scope to note the 2025-2026 EU Omnibus simplification that significantly narrowed the roughly 50,000-company estimate.

   Before

   The article said ESG AUM reached $35 trillion by 2022, that Khan/Serafeim/Yoon found material-ESG improvers outperformed by 3-6%, that SFDR Article 6 means no sustainability integration, that SEC 2022 climate rules were expected to be finalized, and that about 50,000 companies would be subject to CSRD.

   After

   Corrected the GSIA figure and methodology note, the Khan et al. study design, the SFDR description, the SEC rules' 2024 adoption/stay/rescission status, and the CSRD scope after the 2025-2026 simplification.

   Why: These were data and time-sensitive regulatory facts that were outdated or mischaracterized. Corrections use the primary sources (GSIA reviews, the 2016 Accounting Review paper, SFDR text, SEC actions, and the EU Omnibus directive) rather than new unverified sources.

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Full contribution timeline

1. Correction 28 July 2026

   Emir Baycan: Corrected five data and regulatory claims: replaced the single '$35 trillion by 2022' figure with the GSIA's actual reporting (about $35T for 2020 and about $30T in the 2022 review as of end-2021 ex-Japan, the decline reflecting stricter definitions); corrected the Khan, Serafeim, and Yoon (2016, The Accounting Review) study from an 'improvement' study with a 3-6% outperformance figure to its actual design (firms with strong versus poor ratings on financially material issues); described SFDR accurately as a disclosure regime (Article 6 requires disclosure about sustainability-risk integration, not 'no integration'); updated the SEC climate-disclosure rules to reflect that final rules were adopted March 6, 2024, stayed in April 2024, and moved toward rescission by 2025-2026; and updated the CSRD scope to note the 2025-2026 EU Omnibus simplification that significantly narrowed the roughly 50,000-company estimate.

   Proof record →