“From a corporate perspective, ESG initiatives support resilience against market fluctuations. Recent leading studies have shown that there is a strong correlation between ESG evaluation and stock price performance in situations where corporate trust is questioned, such as during a financial crisis.” Asian Development Bank Institute
According to an article by the Asian Development Bank Institute, ESG investments are more stable than other investments during times of financial crises. The current pandemic has highlighted the importance of the ‘S’ factor ie. social factor in ESGs, and how investing in companies with higher ESG ratings can reduce the income inequality exacerbated by COVID-19.
To read the article, head here.