Sustainable and Responsible Investing In Sub Saharan Africa - Does Responsible Investing Outperform In Africa?

A new paper by Investec Securities analyses the performance of HIGH ESG stocks versus LOW ESG stocks.

The results might surprise you.  Positive ESG screening improves risk adjusted returns. The table below summarizes the performance results

  

Mean share price performance (in USD) for Low ESG and High ESG groups

                         1 years              3 years                  5 years

Low ESG          -33%                 11%                        32%

High ESG         -28%                 42%                        55%

Source: Investec Securities

When thinking about Sustainable and responsible investing, ESG acronym stands for environmental, social and governance screening.  The ESG factors are used as positive screening methods that identify opportunities, which promote the principles of responsible investing.

For more information about the paper email us at info@nilecapital.com

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