Asset Management: the positive impact of including ESG criteria
An Amundi study demonstrated the positive impact of considering Environment, Social and Governance (ESG) issues on the performance of a portfolio. For its study, Amundi used data from the 2010-2017 period to analyse the stock market performance of 1,700 companies in five investment areas corresponding to the MSCI index, and their ESG scores. What are the lessons learned? This study showed that integrating ESG criteria had little impact on portfolio risk (volatility and drawdown). On the contrary, taking ESG into account is a decisive factor in portfolio returns. In general, between 2010 and 2013, ESG criteria tended to penalise ESG investors. However, for the 2014-2017 period, ESG investment was a source of outperformance in Europe as well as in North America, and directly related to the increased investor interest in ESG approaches. Why is it important? In October 2018, Amundi announced an ambitious three-year action plan to increase its commitment to responsible investment. By 2021, ESG analysis will be included in all of Amundi’s funds and initiatives, promoting investment in projects having an environmental or social impact.
Amundi’s strategy is fully consistent with the Crédit Agricole Group’s strategy with regard to social and fiduciary responsibility and commitments to responsible and social engagement.