Measuring ESG and Sustainable Investment for the future.
The jury is in...sustainable investing has the potential to benefit both investors and businesses. However, many SRI fund managers have historically had trouble capturing this, since they have a tendency to utilize exclusionary screening. We think that every serious investor's investing process and any business that cares about its shareholders' value should incorporate ESG analysis. If properly implemented, ESG best-in-class focused funds should be able to achieve superior risk-adjusted returns. This is the main finding of our analysis, which we feel is the result of carefully examining and categorizing 56 research papers, as well as 2 literature reviews and 4 meta studies. We looked at more than 100 academic studies of sustainable investing from across the world.