“As ESG (Environmental, Social and Governance) performance has grown significantly in importance for companies and asset managers in recent years, it’s time to look at the numbers.
Is ESG screening a worthwhile tool? In a word, yes!
High ESG focus contributes to risk mitigation; our research shows this is mirrored in strong operational and share price performance. We also note that predictive attributes as to future earnings stability and share price volatility suggest that ESG research belongs in company valuation.
We argue that companies and investors simply cannot afford not to care.”
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