Scientific Beta

The Telegraph: "But according to a study published this month by Scientific Beta (...), there is scant proof of this. They found the returns from ESG investing were generally no higher than those from standard funds – and were even slightly weaker. The study also argued that periods of strong performance, such as in the year of 2020, should be seen as outliers rather than exemplars."

The Telegraph 27/10/2023

"(...) Supporters have long claimed that applying ESG principles to a business is not only ethical but will result in a better-run, more competitive company that can deliver stronger returns for shareholders. But according to a study published this month by Scientific Beta, an index provider that was started by the Edhec-Risk Climate Impact Institute, there is scant proof of this. They found the returns from ESG investing were generally no higher than those from standard funds – and were even slightly weaker. The study also argued that periods of strong performance, such as in the year of 2020, should be seen as outliers rather than exemplars. “For investors looking to integrate ESG objectives in their investment process, it is crucial to question what impact this would have on their portfolio’s financial performance,” said Felix Goltz, one of the co-authors. (...)"