Does ESG Affect Fundamentals?

ESG investing market has shown significant growth over the past decade, and it continues to grow rapidly. It has been proved that systematic analysis of ESG incidents in addition to using traditional ESG scores improves portfolio returns.

Key Findings

• ESG investing market has shown significant growth over the past decade, and it continues to grow rapidly.
• Systematic application of ESG incidents into traditional ESG scores improves portfolio’s returns.
• High rated ESG companies have stronger fundamentals due to better operational performance and lower exposure to ESG incidents.
• High rated ESG companies have better stock performance compared to low rated ESG companies.