Scientific Beta

The Asset: "Over a decade, however, returns have proved to be inconsistent as a result of periods of underperformance. A recent study on ESG investing strategies in the US equity market by Scientific Beta, for example, found that sustainable investing did not deliver higher returns than standard index funds."

The Asset 16/10/2023

"(...) In the realm of environmental, social and governance (ESG) practices and sustainable investing strategies, it is no surprise how often they are viewed as all about picking the greenest among the green companies. Hence, the top-ten holding of funds with ESG labels often consists of banks and tech stocks, which have a smaller carbon footprint than others. Nothing wrong with that approach, of course. And in good years such as in 2020, these ESG funds have outperformed. Over a decade, however, returns have proved to be inconsistent as a result of periods of underperformance. A recent study on ESG investing strategies in the US equity market by Scientific Beta, for example, found that sustainable investing did not deliver higher returns than standard index funds. (...)"