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Study finds ESG delivers financial benefit

More and more investors believe environmental, social and governance (ESG) analysis leads to outperformance in the long term. However, research results have been contentious. An innovative study sheds a new light on the issue

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Study finds ESG delivers financial benefit

More and more investors believe environmental, social and governance (ESG) analysis leads to outperformance in the long term. However, research results have been contentious. An innovative study sheds a new light on the issue

Inside the methodology

To calibrate risk sensitivities along +ESG and -ESG Equity with respect to the three risk factors, risklab applied the GICS industry sector breakdown. In particular, sector weightings using relative carbon footprint, staff costs per sales data and corporate governance ratings were applied. For all data, specialist providers were selected via due diligence and data sources cross-checked by experts.

The relative weighting between economic, social and governance risk factors is equal. In this case, consistency was cross-checked with the results of the SRI Navigator analysis by the equity research team of Société Générale and expert discussions.

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