vi Fu, Shihe and Shan, Liwei, “Corporate Equality and Equity Prices: Doing Well While Doing Good?” (March 12,
2009). Available at SSRN: http://ssrn.com/abstract=1368422.
vii Edmans, Alex, “Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices”
(2010). Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=985735.
viii Derwall, Jeroen, Bauer, Rob, Guenster, Nadja and Koedijk, Kees C. G., “Socially Responsible Investing:
The Eco-Efficiency Premium Puzzle” (May 17, 2004). EFMA 2004 Basel Meetings Paper; Erasmus University
Working Paper. Available at SSRN: http://ssrn.com/abstract=551590.
ix Spellman, G. Kevin and Watson, Robert, “Corporate Governance Ratings and Corporate Performance: An
Analysis of Governance Metrics International (GMI) ratings of US Firms, 2003 to 2008” (January 1, 2009).
Available at SSRN: http://ssrn.com/abstract=1392313.
x See Lee, Darren David and Faff, Warren W., “Corporate Sustainability Performance and Idiosyncratic Risk: A
Global Perspective” (2009). Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1392975.
In addition, Boutin-Dufresne and Savaria (2004) found in a study of 300 Canadian firms from 1995 to 1999 that
bottom-quartile ESG performers had 40% higher firm-specific risk than top-quartile firms; Bauer et.al. (2009)
found an inverse relationship between employee relations and specific risk at 976 US-firms from 1995-2006.
Cited in Hoepner (2010).
xi Gregory, Alan, Whittaker, Julie M. and Yan, Xiaojuan, “Stock Market Valuation of Corporate Responsibility
Indicators” (November 30, 2010). Xfi Centre for Finance and Investment, University of Exeter Discussion Paper
No. 10/06. Available at SSRN: http://ssrn.com/abstract=1723126.
xii Hoepner, Andreas G. F., Yu, Pei-Shan and Ferguson, John, “Corporate Social Responsibility Across
Industries: When Can Who Do Well by Doing Good?” (March 1, 2010). Available at SSRN: http://ssrn.com/
xiii Gil-Bazo, Javier, Ruiz-Verdú, Pablo and Santos, André A. P., “The Performance of Socially Responsible Mutual
Funds: The Role of Fees And Management Companies” (September 25, 2008). Available at SSRN: http://ssrn.
xiv Hoepner, Andreas, Rammal, Hussain Gulzar, and Rezec, Michael, “Islamic Mutual Funds’ Financial
Performance and International Investment Style: Evidence from 20 Countries” (2009). Available at http://
xv See preliminary report at http://www.unpri.org/files/6728_ES_report_environmental_externalities.pdf.
About GMI Ratings
GMI Ratings is an independent provider of research and ratings on environmental, social, governance and accounting-related risks affecting the performance of public
companies. The firm’s ESG ratings for nearly 5,500 companies worldwide incorporate 120 ESG KeyMetrics™ to help investors assess the sustainable investment value
of corporations. The firm also provides Accounting and Governance Ratings (AGR®) for approximately 18,000 public companies worldwide. AGR metrics reflect the
accuracy and reliability of a company’s financial reporting. Clients of GMI Ratings include leading institutional investors, banks, insurers, auditors, regulators and
corporations seeking to incorporate accounting and ESG factors into risk assessment and decision‐making. A signatory to the Principles for Responsible Investment
(PRI), GMI Ratings was formed in 2010 through the merger of GovernanceMetrics International, The Corporate Library and Audit Integrity. In the 2012 Independent
Research in Responsible Investment (IRRI) Survey conducted by Thomson Reuters Extel and SRI-CONNECT.com, GMI Ratings was named “The Best Independent
Corporate Governance Research Provider.” For more information please visit www.gmiratings.com.
These rankings are intended to provide investors with an effective summaryof environmental, social and corporate governance factors that can and do impact investment value. They are not, however, intended for stand-alone
use and should not be considered as simple Buy, Sell or Hold recommendations. Most investment professionals regard these ratings as a specialized, proprietary input to be used for ESG benchmarking in combination with
existing fundamental analysis or other approaches and to help ensure compliance with the UN-PRI (United Nations Principles of Responsible Investing) and other similar standards.