Harvard: Sustainability gave companies a 4,8% higher yearly yield (stock market yield since 1990s)

This Harvard survey finds that sustainability gives a company:

  • An annual above-market average return for the high-sustainability sample was 4.8% higher
  • Lower share price volatility
  • Much better return on equity and return on assets

It compares a matched sample of 180 US-based companies, 90 of which were classify as high-sustainability and another 90 as low-sustainability.

The classification was based on the adoption of environmental, social and governance (ESG) policies in the 1990s that reinforced a cultural commitment to sustainability.

Over an 18-year period (from the mid 1990s and until 2012), the high-sustainability companies dramatically outperformed the low-sustainability ones in terms of both stock market and accounting measures.

Read the survey extract here.

Posted in Ansvarlige investeringer, CSR-strategi.