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│ agelot@lfde.com │+ 33 (0) 1 47 23 98 11
Géraldine Fanara │ gfanara@lfde.com │ +33 (0)1 47 23 98 12
Anne Auchatraire │ aauchatraire@image7.fr │+33 (0)1 53 70 74 68
Anne-Charlotte Créac’h │ accreach@image7.fr │ +33 (0)1 53 70 94 21