Backtest shows ESG outperformance

A study has found significant outperformance of stocks over a 12-year period using ESG data.

The research from TruValue Labs shows large, mid-cap and small-cap stocks across developed and emerging markets outperformed benchmarks.The ESG data used derived from unstructured data in a 12 languages from international, national and local news, NGO reports, trade publications, and social media content on more than 16,000 securities.

Truvalue Labs says their ESG Activity Signal produced long-short quintile spreads of approximately 4% annually.