The relationship between ESG scores and the fund performance of mutual funds was not much different at all

A recent study that assessed the effects of mutual funds subscribing to the United Nations Principles for Responsible Investment provides intriguing insights into the relationship between ESG and fund performance. 💡

The study discovered that while subscriptions to these funds were widely publicized with great zeal on their websites, attracting significant inflows, there was no meaningful change in the ESG scores or investment returns of these funds after they subscribed. In actuality, the ESG performance of these funds was not much different from their pre-subscription state or from those funds that did not subscribe at all.

Given this, it is imperative that we critically analyze ESG initiatives and fully comprehend the outcomes they produce. Informed decision-making is essential for responsible investment and promoting a better future for all.

What do you think about this? 🤗

#ESG #investment #esginvesting #future

#100daysoflearning Day 003