ESG & Investing
ESG Campaigns Seen Falling Out of Favor With Activist Investors
- A&M predicts a drop in ESG-related activist campaigns in 2024
- Environmental, social campaigns lag behind on relative returns
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Activist investors are expected to carry out fewer environmental and social campaigns this year after the strategy proved less lucrative than other shareholder agendas, according to business consulting firm Alvarez & Marsal Inc.
An analysis by the firm found that activist campaigns focused on operational or strategic change outperformed the market by an average of 9.4% over the past six years. By contrast, campaigns focused on environmental and social issues saw the weakest relative returns, outperforming the market by just 0.2% on average for the same period, according to a report published on Tuesday.