Share Prices Boosted by Sustainable Strategies - The Minute

Share Prices Boosted by Sustainable Strategies - The Minute

Multimedia from this Release

Thursday, September 18, 2014 - 4:00pm


CONTENT: Multimedia with summary

There’s more evidence that companies with sustainability policies will see a rise in their share price. This finding comes from a meta-study of more than 190 academic studies on the results of ESG policies on performance by the University of Oxford’s Smith School of Enterprise and the Environment, and Arabesque Asset Management, a sustainable investor. Overall, the study reports that corporate sustainability lowers a company’s costs and raises its operating performance.

In addition, 31 out of 39 of the studies showed a positive correlation between sustainability and stock market performance. “Stocks of well-governed firms perform better than stocks of poorly governed firms,” SSEE and Arabesque conclude. The authors add that “on the social dimension, the literature shows that good employee relations and employee satisfaction contribute to better stock market performance.” Summarizing the value of the findings for investors, Andreas Feiner, the head of values-based research at Arabesque, said, “the most successful future investors will be those with continuous research programs that analyze a range of ESG factors. Sustainability and profitability go hand in hand.” The London-based Arabesque was set up by a group of former Barclays bankers last year. The asset manager combines socially responsible investing with Islamic investment principles.

I’m John Howell for 3BL Media.

Video Source: Share Prices Boosted by Sustainable Strategies