Leveraging EU Green Investment Frameworks for Sustainable Portfolio Construction
Research & Development Publication by Nexialog Consulting
Authors: Valentin Erades, R&D Consultant and Areski Cousin, R&D Director at Nexialog Consulting
Publication date: October 21, 2025
Sustainable Portfolio Optimization Aligned with the EU Taxonomy
As part of its R&D work on sustainable finance, Nexialog Consulting introduces a quantitative approach to portfolio optimization that integrates the EU Green Taxonomy — a cornerstone of European ESG regulation.
Using data from CAC 40 companies, the study explores how green CAPEX and green revenue indicators can be used to align investment portfolios with EU sustainability objectives while preserving financial performance.
Results show that reasonable levels of alignment (20–30%) can be achieved without deteriorating the Sharpe ratio or diversification, offering a concrete balance between performance and environmental responsibility.
A Step Toward Responsible and Transparent Investing
This research demonstrates that ESG integration based on regulatory data provides a robust framework for building sustainable and transparent portfolios, limiting exposure to greenwashing risks.
It reflects Nexialog Consulting’s commitment to supporting banks and insurers in applying EU sustainable finance frameworks such as the Taxonomy, SFDR, and CSRD.
Keywords
EU Taxonomy, ESG investing, sustainable finance, green CAPEX, portfolio optimization, responsible investment, Nexialog Consulting.