• Gustavo Bernal Torres

Determining the Financial Impact of ESG Investing

Uncovering the relationship between ESG and financial performance through meta-analysis of 1,000+ studies-

  • From the NYU Stern Center for Sustainable Business, an examination of the relationship between ESG and financial performance in more than 1,000 research papers from 2015 – 2020.

  • Key takeaways: improved financial performance due to ESG becomes more noticeable over longer time horizons; ESG integration as an investment strategy performs better than negative screening approaches; ESG investing provides downside protection, especially during a social or economic crisis; Sustainability initiatives at corporations appear to drive better financial performance due to mediating factors such as improved risk management and more innovation; Studies indicate that managing for a low carbon future improves financial performance; ESG disclosure on its own does not drive financial performance.

Source: https://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/centers-of-research/center-sustainable-business/research/research-initiatives/esg-and-financial-performance


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