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Monday, May 6, 2024

Domestic ESG-Focused Firms Performed Better Than Global Peers In Price Volatility, Equity Returns: RBI Study


The ESG study based on the Morgan Stanley Capital International (MSCI’s) ESG indices is published in the February bulletin of the Reserve Bank

The findings suggested that the companies which have managed and disclosed their ESG related risks better are associated with higher stock prices

Large listed domestic companies with an active ESG (environmental, social and governance) framework have performed better than their broad market counterparts even during extreme market events like the pandemic shocks, says an RBI study.

The RBI study of 18 economies with such frameworks, indicate that investors reward pro-climate and pro-socially oriented companies.

The analysis is based on the 10 emerging countries of Brazil,…

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