Scientific Beta

Investment News New Zealand: "A new Scientific Beta study has debunked claims that environmental, social and governance (ESG) information can improve portfolio performance or lower risk."

Investment News New Zealand 20/07/2025

"(...) A new Scientific Beta study has debunked claims that environmental, social and governance (ESG) information can improve portfolio performance or lower risk.

In a new paper, the specialist index firm says ever-changing market and investment crosswinds inevitably skew portfolio exposures to factors, geographies or other unintended risks and adrift of target.

The in-depth statistical probe of multiple datasets also found 'financially optimal' implementation of ESG data brings trade-offs that negate any sustainability benefits. (...)"