“Referencing its SustainEx tool, Schroders found a ‘good’ company (one that is highly environmentally friendly) would be worth roughly 50 per cent more than a bad one with the same earnings.
Using its SustainEx, which looks at the dollar-value of the impact individual companies have on society before scaling this relative to their sales, Schroders found bad companies were valued at 17-times their last 12-months earnings. However, good companies were on 25-times.”
[COMMENTARY]I can’t comment on the methodology. However, Shroders is a highly respected firm in the ESG space. However, I would hope it gets peer reviewed and published in a suitable professional journal.
ESG-conscious companies worth 50% more, Schroders finds, by Carmen Reichman, May 20, 2022, FT Advisor, UK.