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Export Reference (APA) 
Carvalho, P. V., Falcão, P. F., Pinheiro, C. M. & Carrão, D. (2026). Revisiting ESG performance: Do high scores translate to higher returns? A risk-adjusted analysis of S&P 500 portfolios. Finance Research Letters. 91
Export Reference (IEEE) 
J. P. Carvalho et al.,  "Revisiting ESG performance: Do high scores translate to higher returns? A risk-adjusted analysis of S&P 500 portfolios", in Finance Research Letters, vol. 91, 2026
Export BibTeX 
@article{carvalho2026_1769467944414,
	author = "Carvalho, P. V. and Falcão, P. F. and Pinheiro, C. M. and Carrão, D.",
	title = "Revisiting ESG performance: Do high scores translate to higher returns? A risk-adjusted analysis of S&P 500 portfolios",
	journal = "Finance Research Letters",
	year = "2026",
	volume = "91",
	number = "",
	doi = "10.1016/j.frl.2025.109467",
	url = "https://www.sciencedirect.com/journal/finance-research-letters"
}
Export RIS 
TY  - JOUR
TI  - Revisiting ESG performance: Do high scores translate to higher returns? A risk-adjusted analysis of S&P 500 portfolios
T2  - Finance Research Letters
VL  - 91
AU  - Carvalho, P. V.
AU  - Falcão, P. F.
AU  - Pinheiro, C. M.
AU  - Carrão, D.
PY  - 2026
SN  - 1544-6123
DO  - 10.1016/j.frl.2025.109467
UR  - https://www.sciencedirect.com/journal/finance-research-letters
AB  - The rise of ESG investing is often underpinned by the belief that sustainability enhances long-term financial performance. Research suggests ESG scores correlate with superior stock market returns, but the evidence remains mixed. We contribute to the debate by directly comparing the performance of top- and bottom-ranked ESG portfolios within the S&P 500 over the period 2005–2024. Using raw returns, we find that low ESG-rated portfolios consistently outperform their higher-rated counterparts in absolute terms. However, when accounting for risk, using risk-adjusted metrics — specifically the modified Sharpe ratio — no statistically significant differences emerge. These findings challenge prevailing assumptions about ESG investing and highlight the need for a more nuanced understanding of the trade-offs between sustainability and profitability in portfolio construction.
ER  -