Bank of America Merrill Lynch found in 2018 that firms with a better ESG record than their peers produced higher three-year returns, were more likely to become high-quality stocks and less likely to have large price declines or go bankrupt.
However, study by NN Investment Partners1 showed that more than half of professional investors still think that incorporating ESG into their investment strategy will reduce their returns, with more than 70% thinking this in Italy and the Netherlands, along with 80% of German investors.
With almost all the indicators proving ESGs value, why is this yet to become the norm?
Our latest complimentary whitepaper, ‘Moving ESG into the Mainstream: Drivers and Actions’ explores the rise of ESG in Investments – you can download the content piece here.
Focused on European market trends, the whitepaper explores:
Considering ESG factors is “a way to measure externalities,” Christian Heller, CEO of the Value Balancing Alliance, whose members aim to create a standardized model for measuring and disclosing the environmental, human, social and financial value companies provide to society. “It’s a way to extend risk management because at some point the externalities will be internalised, for example through carbon taxes.”
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