Scientific Beta

CFO Dive: "The perception of outperformance by ESG equity strategies has grown with investor interest in such investing, Scientific Beta said, adding "recent strong performance of ESG strategies can be linked to an increase in investor attention. “We find that alpha estimated during low attention periods is up to four times lower than alpha during high attention periods,” Scientific Beta said. “Therefore, studies that focus on the recent period tend to overestimate ESG returns.”"

CFO Dive 04/05/2021

"(...) The perception of outperformance by ESG equity strategies has grown with investor interest in such investing, Scientific Beta said, adding "recent strong performance of ESG strategies can be linked to an increase in investor attention. “We find that alpha estimated during low attention periods is up to four times lower than alpha during high attention periods,” Scientific Beta said. “Therefore, studies that focus on the recent period tend to overestimate ESG returns.” ESG equity investing can offer advantages by enabling investors to align investments with their values, make a positive social impact or reduce climate or litigation risk, Scientific Beta says. “Such benefits offset lower expected returns.” Still, “there is no solid evidence supporting recent claims that ESG strategies generate outperformance." (...)"