Being green makes me greener? An evaluation of sustainability rebound effects

Sustainability is not only about caring for future generations. It can be a profitable business. For stock market investors sometimes, it is difficult to choose where to allocate financial resources, especially in sustainability investment funds. In this sense, the Brazilian stock market index provides a measurement criterion that defines which Brazilian companies invest in sustainability purposes, the so-called Corporate Sustainability Index (ISE). What is still unknown are the consequences of the performance of this index in the stimulation of new practices of sustainability in companies, in other words, if there is a rebound effect of green investments in stock markets. For that, we conduct a documental research analysis comparing virtuous and crisis economic periods with Delphi Method and correlation regression. The data revealed that certified companies still maintain their investments in sustainability practices even when the context is not favorable and the index is not performing well. This represents a cost in the short-range that represents a positive rebound effect of being certified and employing efforts to maintain greener operations in the long-range. Individual behavior revealed to be a fundamental aspect of an organizational decision of sustainability strategy. The paper contributes to investment market choices for attesting long-range sustainability investments by certified companies, even in hostile economic conditions, demonstrating that sustainability is aligned with purpose and durable commitment toward sustainable development.