The ongoing Covid-19 crisis and the resulting market turmoil have confirmed a pre-existing trend within equity investing: the increasing relevance of integrating ESG criteria and sustainability into the investment decision. We believe doing so will add value both in terms of being able to deliver better risk-adjusted return, but also in terms of helping to put focus on - and ultimately improve - important ESG parameters for companies and society.
ESG equities have proved resilient throughout the crisis, both in terms of flows and performance. On flows, ESG equity funds – including active and passive worldwide open-ended funds - have experienced net inflows both in 2019 and so far this year, while non-ESG equity funds have seen net outflows. On performance, ESG criteria have proved to be a source of outperformance both over the long term and recently.
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