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 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.
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 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.
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