Cohen, Mark, Scott A. Fenn, Shameek Konar. "Environmental and Financial Performance: Are They Related?" Working paper, May 1997.

Reviews the relationship between environmental data compiled by the Investor Responsibility Research Center (IRRC) and the performance of S&P 500 companies for the 1987-91 time period. Constructs industry-balanced "high polluter" and "low polluter" portfolios, and finds that risk-adjusted returns of the low polluter portfolio were better than those of the high polluter (reported as 18.1% vs. 16.0%, although risk adjustment methodology is not described). The differences were not statistically significant. Concludes that "investors who choose the environmental leaders in an industry-balanced portfolio were found to do as well (or better) than choosing the environmental laggards in each industry."