Scientific Beta

Telegraf: "However, a new paper from Scientific Beta says that body of research is flawed. In its analysis of ESG funds, Scientific Beta found that most of the outperformance was linked to the funds’ exposure to “quality” companies, an investment factor that is tied to financial metrics like “high profitability and conservative investment”, rather than their ESG credentials."

Telegraf 06/05/2021

"(...) It is undeniable that there has been a lot of good news for environmental, social and governance (ESG) investors in recent months, but as two stories in the FT this week show, there are still lingering doubts swirling around the sector. The first story raises some important questions about ESG performance. Moral Money readers will know that numerous recent studies have found that ESG funds tend to do better (or at least no worse) than broad market indices. However, a new paper from Scientific Beta says that body of research is flawed. In its analysis of ESG funds, Scientific Beta found that most of the outperformance was linked to the funds’ exposure to “quality” companies, an investment factor that is tied to financial metrics like “high profitability and conservative investment”, rather than their ESG credentials. (...)"