Hope you are doing well. Welcome back to our brief thoughts on ESG.
This week we want to share some highlights of a new report from Kroll looking at the relationship between historical returns of publicly traded companies and their ESG ratings. This topic has been addressed a number of times in the past, with mixed results. We like that this report looks at a relatively long period of time (2013-2021) and covers data from over 13,000 companies.
Below are the study’s highlights, but if you are interested in the topic, we definitely recommend a full read since the report goes beyond the study itself to paint a pretty comprehensive picture of ESG reporting and ESG investing.
Study’s highlights (according to us)
- The conclusion: “Our study shows that companies with better ESG ratings generally outperformed those with lower ratings over the 2013-2021 period.”
- The methodology: “We investigated the relationship between a company’s total stock returns (dividends plus capital appreciation) and its MSCI ESG rating over the 2013−2021 period. Specifically, we built investment portfolios comprised of companies rated under each of MSCI’s seven individual ESG rating categories (AAA, AA, A, BBB, BB, B and CCC) and aggregate ratings (Leaders, Average and Laggards) to examine whether an investment strategy focused on companies with better ratings would result in a superior return performance.”
- More on the results:
- “Globally, ESG Leaders earned an average annual return of 12.9%, compared to an average 8.6% annual return earned by Laggard companies.”
- “In the United States, the country with the largest number of rated companies, the ESG Leaders earned an average annual return of 20.3%, compared to a 13.9% average annual return earned by Laggard companies.”
- “Leaders outperformed Laggards in all industries analyzed, except for Consumer Staples and Health Care.“
- “Real Estate companies with an ESG Leader rating earned a higher average return (9.8%) than those with a Laggard rating (6.2%). However, companies with an Average ESG rating earned essentially the same average return (6.1%) as Laggards.”
I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.
Best,
Marimar
CEO, Miranda ESG
Contacts at Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
Espero que este correo te encuentre bien y bienvenido de nuevo a nuestros pensamientos sobre ESG.
Esta semana queremos compartir algunos de los aspectos más destacados del nuevo reporte de Kroll que explora la relación entre el desempeño histórico de las acciones de empresas listadas y sus calificaciones ESG. Este tema ha sido objeto de estudio en el pasado, aunque con resultados mixtos. Nos gusta que este análisis abarca un periodo de tiempo relativamente extenso (2013-2021) y que incluya información de más de 13,000 empresas.
Abajo presentamos lo que creemos que son los puntos más destacados del estudio, pero, si te interesa el tema, recomendamos una lectura completa. El reporte va más allá del propio estudio ya que incluye una descripción general de las prácticas de reporteo ESG y de las prácticas de inversión responsable.
Lo más destacado del estudio (según nosotros)
- Sobre la conclusión: “Our study shows that companies with better ESG ratings generally outperformed those with lower ratings over the 2013-2021 period.”
- Sobre la metodología: “We investigated the relationship between a company’s total stock returns (dividends plus capital appreciation) and its MSCI ESG rating over the 2013−2021 period. Specifically, we built investment portfolios comprised of companies rated under each of MSCI’s seven individual ESG rating categories (AAA, AA, A, BBB, BB, B and CCC) and aggregate ratings (Leaders, Average and Laggards) to examine whether an investment strategy focused on companies with better ratings would result in a superior return performance.”
- Más de los hallazgos:
- “Globally, ESG Leaders earned an average annual return of 12.9%, compared to an average 8.6% annual return earned by Laggard companies.”
- “In the United States, the country with the largest number of rated companies, the ESG Leaders earned an average annual return of 20.3%, compared to a 13.9% average annual return earned by Laggard companies.”
- “Leaders outperformed Laggards in all industries analyzed, except for Consumer Staples and Health Care.“
- “Real Estate companies with an ESG Leader rating earned a higher average return (9.8%) than those with a Laggard rating (6.2%). However, companies with an Average ESG rating earned essentially the same average return (6.1%) as Laggards.”
Espero que esto te haya parecido interesante. Como siempre, si hay algo en lo que pudiéramos ayudar, o si hay un tema de ESG del cual quisieras saber más, por favor háznoslo saber.
Saludos,
Marimar
CEO, Miranda ESG
Contactos en Miranda Partners
Damian Fraser
Miranda Partners
damian.fraser@miranda-partners.com
Marimar Torreblanca
Miranda-ESG
marimar.torreblanca@miranda-partners.com
