From The Stockholder To The Stakeholder: How Sustainability Can Drive Financial Outperformance


Authors
Andreas Feiner (Arabesque Asset Management), Gordon Clark and Michael Viehs (University of Oxford)

Research Organisation
Arabesque Asset Management and Smith School of Enterprise and the Environment, University of Oxford

Report Date
March 31, 2015

Document summary

This report aims to give the interested practitioner an overview of the current research on ESG. In this enhanced meta-study we categorize more than 190 different sources. Within it, we find a significant correlation between diligent sustainability business practices and economic performance. The first part of the report explores this thesis from a strategic management perspective, with remarkable results: 88% of reviewed sources find that companies with robust sustainability practices demonstrate better operational performance, which ultimately translates into cashflows. The second part of the report builds on this, where 80% of the reviewed studies demonstrate that prudent sustainability practices have a positive influence on investment performance. This report ultimately demonstrates that responsibility and profitability are not incompatible, but in fact wholly complementary.

The report was first published in September 2014 and then updated in March 2015.
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