Scientific Beta

NordSIP: "According to a new research paper by Scientific Beta, adjusting for ESG strategies’ risk shrinks their excess risk-adjusted return (alpha) to zero. Indeed, the research finds that sector biases and exposures to equity style factors are able to capture the returns of ESG strategies. The analysis also suggests that returns are inflated when investor attention to ESG rises."

NordSIP 04/05/2021

"(...) According to a new research paper by Scientific Beta, adjusting for ESG strategies’ risk shrinks their excess risk-adjusted return (alpha) to zero. Indeed, the research finds that sector biases and exposures to equity style factors are able to capture the returns of ESG strategies. The analysis also suggests that returns are inflated when investor attention to ESG rises. The study is authored by Giovanni Bruno, Mikheil Esakia and Felix Goltz and examines equity strategies that exploit information in ESG ratings, and contradicts several papers that suggest that ESG strategies are able to outperform the market. (...)"