Summary

Abstract

With the rising awareness around ESG issues worldwide, institutional investors have started to massively look into responsible investment. The latter has grown substantially in Europe and in North America in the past 5 years.

Amundi’s new research on the impact of ESG investing on equity asset pricing finds that when an alpha strategy is massively implemented, it becomes a beta strategy.

In Europe, the massive mobilization of institutional investors regarding ESG investing has impacted demand mechanisms, with a subsequent effect on prices, thereby also triggering a performance premium.

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Authors

RC - Author - RONCALLI Thierry
PhD, Head of Quant Portfolio Strategy, Amundi Investment Institute
RC - Author - Vincent Mortier
Group Chief Investment Officer