As ESG (Environmental, Social and Governance) performance has grown significantly in importance for corporates and asset managers in recent years, it’s time to look at the numbers. Is ESG screening a worthwhile tool? In a word, yes. High ESG focus contributes to risk mitigation; our research shows this is mirrored in strong operational and share price performance. We also note that predictive attributes as to future earnings stability and share price volatility suggest that ESG research belongs in company valuation. We argue that companies and investors simply cannot afford not to care.
If you want a clear view of why corporates cannot afford not to care about ESG Nordea Markets Equity Research team shares their view on ESG and why it matter to you in their Nordic ideas report. Click here to download the full report.
Some key learnings
Companies that invest in ESG are generally of higher quality
ESG factors are likely to become more important in the future
We complement our stock screens with ESG
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