Sustainable investing, a rather popular thing to say these days, is not merely about “doing good and doing well”. As the experience of asset manager Templeton Global Equity Group has shown, sustainable investing can drive outperformance as well.
Since 2010, the funds focused on ESG (environment, sustainability and governance) have outperformed non-ESG funds by close to 5%, with the difference widening in the last five years.
“This has highlighted that ESG investment has not been lowering investment returns,” says Templeton in a press release. Along with better returns, there is also a growing pool of investors’ money that have made their way into can be deemed as “sustainable” assets.