Corporates – this is why you cannot afford not to care about ESG

Interest in ESG among the public and regulators is growing. That put demands on corporates. Here is why corporates cannot afford not to care about ESG.

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

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.