Investment Institute
Equities

ESG dissection of European equities

  • 02 February 2023 (5 min read)

An empirical analysis of ESG factors and pillars and the implications for European equity markets

Key points

  • Our research shows the highest-rated ESG stocks have generated an average outperformance of 29 basis points versus the STOXX Europe 600 index over a three-month investment horizon1
  • This outperformance appears to be driven by the environmental and social pillars, which are the only ones to generate a premium when applying this bucketing strategy
  • Companies with a one-notch ESG rating downgrade tend to underperform regardless of the pillar that declines
ESG dissection of European equities
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