An article published on May 22, 2019 in The Motley Fool examines whether ESG investing produces better stock returns.
The authors explain that it is “time to put to rest the conventional wisdom that investing for anything other than shareholder value results in poor investor outcomes. There’s plenty of evidence that companies prioritizing ESG issues actually generate superior long-term financial performance across a range of metrics — including sales growth, return on equity (ROE), return on invested capital (ROIC), and even alpha (market outperformance).”
The article provides “an overview of the most esteemed investing sources sharing insights on how ESG drives superior investing returns.” It cites research from over 20 financial institutions and numerous academic journals.
You may read the article on The Motley Fool internet site.