In this context, sustainable investments are expected to deliver risk-adjusted returns in line with the market over a reasonably long investment period, and EFP in the form of environmental, social and other added value.
One research company that has created a stock screen of dividend-growth stocks is Value Line, whose list includes stocks that are comparatively low-risk investment choices.
This line of thinking suggests that public pensions should use a risk-free investment return assumption rather than the investment return assumption used by most plans of between 7.5 percent and 8.5 percent.