On November 12, 2018 Investment Week reported on two new research reports analyzing the impact of ESG on performance.
“Companies with improving ESG credentials have on average outperformed by 14.4% in emerging markets and 5.2% in developed markets over five years, according to a new MSCI report.
The MSCI research into how valuations are impacted by ESG scores compares the financial performance of companies with strong positive ESG momentum versus companies with negative ESG momentum.”
The MSCI report analyzed and developed market companies during the time period May 2009 to February 2018 and emerging market companies during the time period June 2013 to February 2018
A separate report from Hermes, ESG Investing: A Social Uprising, “examines the impact of environmental, social and governance (ESG) factors on equity returns in the MSCI World Index from 31 December 2008 to 30 June 2018, revealed a strong social focus impacted valuations for the first time, having failed to make a difference in 2014 or 2016 studies.”
Subscribers may read the article on the Investment Week internet site.