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By Alamin Hussain 30-06-2020
In: top-picks | ESG & Climate Change

Macro implication of ESG practises and Charles Schwab on SRI performance

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The Effect of Firm-level ESG Practices on Macroeconomic Performance (Oxford Sustainable Programme, 19-page read) Firm-level ESG practices are positively associated with GDP per capita in both developed countries and emerging economies. One-point increment (out of 100) in the average E, S, and G performance leads to 0.06%, 0.10% and 0.19% increase in the log of GDP per capita, on the global scale. [Bullish ESG]

How Well Has Socially Responsible Investing Performed? (Charles Schwab, 8 min read) SRI funds return performance ranks around 50th percentile relative to the peer group. SRI also have similar volatility relative to equity peers. However, during significant market drops (2008 and 2020) It held value better than peers. [Neutral ESG]