“Sustainable Impact” report, Morgan Stanley

Written by Rebecca O'Connor on 7th Sep 2015

Sustainable Impact, March 2015

3 super findings:

  • Investing in sustainability has usually met, and often exceeded, the performance of comparable traditional investments. This is on both an absolute and a risk-adjusted basis, across asset classes and over time
  • Sustainable equity Mutual Funds had equal or higher median returns and equal or lower volatility than traditional funds for 64% of the periods examined.

  • There is a positive relationship between corporate investment in sustainability and stock price and operational performance, based on a review of existing studies

Cool statistic:

“Given a $1 investment in 1993 in a value-weighted portfolio of high sustainability versus low sustainability firms, the high sustainability portfolio would have grown to $22.60 by 2010, while the low sustainability portfolio would have only reached $15.40, a difference of over 46%.”

Memorable graph:

 Screen Shot 2015-09-07 at 12.22.48

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