Green Funds

Morgan Stanley concluded that sustainablefunds provide similar returns to traditionalfunds but offer investors reduced downside risk and volatility in an unpredictable market based on an evaluation of 11,000 mutual funds from 2004 to 2018.

ESG may drive a company's value and becomes a vital component of any investment process since it identifies major risks that may have a significant effect on financial results.

According to Deloitte's studies: ‘using regression analysis, we find that a 10-point higher ESG score is associated with an approximate 1.2x higher EV/EBITDA multiple. Furthermore, we also find that a company that increases its ESG score by 10 points experiences an increase of approximately 1.8x in its EV/EBITDA multiple.'

APOG provides customised ESG-analysis and ongoing risk performance to incorporate the outcome into portfolio valuations and M&A process. 

Source: https://www.morganstanley.com/content/dam/msdotcom/ideas/sustainable-investing-offers-financial-performance-lowered-risk/Sustainable_Reality_Analyzing_Risk_and_Returns_of_Sustainable_Funds.pdf

Source: https://www2.deloitte.com/ch/en/pages/financial-advisory/articles/does-a-company-ESG-score-have-a-measurable-impact-on-its-market-value.html