ESG & Factor Investing: a new stage has been reached

ESG Investing is evolving extremely rapidly, in Europe and abroad. The importance of taking into account environmental, social and governance factors in investment decisions has become more acute with the coronavirus. Past Amundi research has underlined that ESG integration has been a driver of alpha since 2014.

This article explores whether or not ESG can be considered as a new factor, alongside traditional factors (value, momentum, etc.) and the key findings are:

– In Europe, ESG has become a beta strategy and therefore is crucial for diversification in multifactor portfolios.
– In North America, ESG remains an alpha strategy and diversification adds little value.

Read the complete whitepaper now at the link below