Barclays Quant Analysts Find ESG Outperforms When Measuring Risk

A study by analysts at Barclays Plc has found that ESG portfolios outperform their conventional equivalents, when adjusting for risk.

“Many investors view ESG as a constraint that reduces performance,” Barclays quantitative strategists including Arik Ben Dor and Jingling Guan wrote in a report on Tuesday. “However, we find that once controlling for risk, stocks with better ESG scores earned higher returns.”