SRI put to the test by the crisis

La Financière de l’Échiquier (LFDE) publishes the updated version of its SRI & Performance by LFDE study[1] on the compatibility of SRI and stock market performance. At the beginning of 2019, this study had shown that taking Environmental, Social and Governance (ESG) criteria into account promotes long-term performance.

The updated edition as of 31.03.2020 reveals the resilience of companies with the best ESG profiles: a year later, the outperformance of the best ESG profiles has been accentuated by the crisis:

  • From 01.01.2010 to 31.03.2020, the portfolio of the best ESG profiles generated a performance 3.8 times higher than that of the worst ESG profiles. This gap has widened considerably, being 2.6 times at the end of 2019.
  • The risk / return ratio has remained stable.
  • As in 2019, the study confirms our extreme vigilance regarding poor governance: the portfolio composed of the worst governance scores generated the worst performance over 10 years (+ 126%).

Our study confirms the outperformance of companies with very good ESG profiles regardless of market configurations. The results also show that good management of non-financial risks is a wonderful asset, particularly in times of crisis. “Said Sonia Fasolo, SRI Manager.

To access the SRI & Performance by LFDE study, click here.

Media Contacts

Anne-Laure Gelot│ │+ 33 (0) 1 47 23 98 11

Géraldine Fanara │ │ +33 (0)1 47 23 98 12

Anne Auchatraire │ │+33 (0)1 53 70 74 68

Anne-Charlotte Créac’h │ │ +33 (0)1 53 70 94 21

[1] The results of the analyzes presented in this study are based on the best sources in our possession and on a proprietary ESG analysis methodology. Other criteria are taken into account in the performance of a share. Past performances are not a reliable indicator of future performances and may vary over time.