Scientific Beta

Financial Times: "His view is partly supported by research from index provider Scientific Beta, which calculated that ESG stocks do better when the media and investors are paying more attention to them (as measured by inflows into ESG funds). It also found that much of the outperformance can be explained by the fact that many green companies are higher risk."

FTfm 18/10/2021

"(...) His view is partly supported by research from index provider Scientific Beta, which calculated that ESG stocks do better when the media and investors are paying more attention to them (as measured by inflows into ESG funds). It also found that much of the outperformance can be explained by the fact that many green companies are higher risk. The history of more traditional “sin stocks” such as tobacco, gambling and firearms companies offers mixed evidence. Research done in the 2000s suggested that, rather than lagging behind the broader stock market, sin stocks outperformed it. One global study led by Frank Fabozzi of Edhec Business School even argued that “an economic gain might accrue for not conforming to social standards”. (...)"