Evaluating ESG and Economic Value Added Momentum
JULY 22, 2022
- ESG Momentum is an important consideration when looking at potential outperformance, and can be a better indicator of alpha than pure ESG Performance.
- Firms with increasing ESG Momentum that are nevertheless rated below ‘Prime’ offer room for further improvement.
- Combining EVA Momentum and ESG Momentum can generate additional alpha, particularly for small caps.