Research from the University of Oxford and Arabesque Asset Management has found that sustainability standards continue to serve as a foundation for good performance in food and drink companies.
The analysis of 190 empirical research studies found that, in 90%, sound sustainability lowered the cost of capital, while in 88% found that solid environmental, social and governance (ESG) initiatives translated into better operation performance for businesses. And, researchers said, the resulting impact on stock performance suggested that sustainability is recognised in market valuations as well.
The findings have been presented by the Global Ethical Finance Forum (GEFF) – the gathering of the global responsible finance and investments industry – ahead of its conference this September.
Edward Mason, who is head of responsible investment for Church Commissioners for England and member of the GEFF panel on ESG screens and risk mitigation, said: “At the Church Commissioners we believe that the way in which we invest is part of the witness and mission of the Church of England. At GEFF I’ll present our comprehensive approach to responsible investment which has consistently delivered strong investment returns in a way that is in line with our values.”
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