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.