Research in support of responsible investments

With the increasing view that ESG integration makes good business sense, we are delighted to present research from Oldfield Partners, which used GES data to analyse the impact of ESG violations on share prices, concluding:

Repeat violators and those companies with poor ESG disclosure ratings perform [even more] poorly. Engagement with management post-event has a positive impact and companies with lower valuations and less financial leverage recover better. Governance violations are very damaging, far more so than Environmental or Social violations. Stocks that fall sharply (>-10%) in the first month should be avoided as they go on to underperform hugely.”

Oldfield Partners’ research report is available through their website here.