Sustainability and the Cost of Capital

The world of ESG explored. A rotating cast of environmental, social, and governance researchers join hosts Mike Disabato and Bentley Kaplan as they discuss the most pressing news of the week. But in an enjoyable way.

ESG integration, or the inclusion of ESG factors into the investment process, has evolved over time. MSCI has performed extensive research to assess the risk and performance characteristics of MSCI ESG Ratings and MSCI ESG Indexes.

Based on a quintile analysis for MSCI ESG Ratings for the MSCI Europe Index, we found that companies in the highest quintile have consistently outperformed those in the lowest quintile since 2013, when these ratings were first introduced.