The Transatlantic ESG Performance Divide

    Stockholm (NordSIP) – According to a report reviewing the impact of ESG criteria on portfolio performance commissioned by Amundi, ESG investing tended to penalise ESG investors between 2010 and 2013, but rewarded ESG investors after 2014. Over the last year and a half, the report finds that ESG investing continues to be a source of outperformance in the Eurozone while squeezing returns in North America since 2018.

    The findings update and confirm a seminal paper initially published in 2019. The researchers used data from 2018-2019 to analyse the performance of 1,700 companies across five investment universes, corresponding to MSCI indices: MSCI North America, MSCI EMU, MSCI Europe-ex EMU, MSCI Japan and MSCI World.

    “As a responsible investor, we continually monitor ESG investing dynamics to ensure that we are well-positioned to meet the needs of our clients,” Thierry Roncalli, Head of Quantitative Research, commented. “Our new research indicates that ESG investing continues to offer value, but is becoming more mature with divergent trends across geographies, investment strategies and the three themes of E, S and G.”

    Asides from the transatlantic divide in ESG performance, the report also found that the Social part of ESG has gone from being a performance laggard to being the best performing since 2018. Moreover, the report also highlights how ESG integration has moved from mere exclusions to include engagement and improved ESG performance over time.

    “The complexity and diversity of responsible investing means investors must be agile and willing to respond to new themes and drivers,” Vincent Mortier, Group Deputy CIO, added. “We have found that over the last 10 years, investor mobilisation and awareness has meant that the consideration of ESG factors has gone from a ‘nice to have’ to a ‘must have’”.

    Image by Noel Bauza from Pixabay


    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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