News Formal

Stock performance study shows companies should take environmental and social factors seriously

  • 📰 CNBC
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 72%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Societe Generale studied the impact on companies following an ESG high controversy event, finding that stocks typically underperformed by 12% over the following two years.

Societe Generale looked at the impact of "high ESG controversy" events on stock performance, and found that two thirds of the time shares underperformed the broader market by an average of 12% over the subsequent 2 years.

The firm identified 12 companies that have recently experienced "high ESG controversy events," including Wells Fargo, Chevron, Vale, Boston Scientific and Boeing.grows, Societe Generale quantified the potentially large consequences for companies that don't follow suit. The firm defined a "controversy" as "when a company's activity has unintended and/or undesired negative environmental and/or social effects on stakeholders, with corresponding reputational risk," adding that it's the "extreme ESG downside risk, with at times a massively negative impact on company share prices."The firm based its analysis on 80 past ESG controversies, dating back to 2005 and spanning regions and sectors.

The firm noted that a stock's drop can contribute significantly to the performance of its regional sector, which is why the underperformance relative to the global benchmark was more extreme.Global Sustainable Investment Alliance

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Okahaz Interesting.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jeff Bezos dumped $1.8 billion in Amazon stock after its share price skyrocketed - Business InsiderAmazon shares saw a huge spike last week after the company's triumphant 2019 earnings report, increasing Bezos' personal wealth by $13.5 billion. Needed some walking around money I guess. He is a divorced man who need cash . That's how you turn shares into cash...
Source: BusinessInsider - 🏆 729. / 51 Read more »

Trump touts stock market's record run, but who benefits?President Trump often trumpets the hot U.S. stock market as a key achievement of his presidency, and he was in full self-congratulatory mode on that front during the State of the Union address For good reason! Hope it stays up! When are you guys going to start using the 'L' word when he LIES? Stock market is a toy for the wealthy. Means nothing for economy. Economy actually sucks with nothing but low wage crap jobs
Source: Reuters - 🏆 2. / 97 Read more »