Sustainable investing: resilience amid uncertainty
Research by BlackRock has established a correlation between sustainability and traditional factors such as quality and low volatility, which themselves indicate resilience. As a result, we would expect sustainable companies to be more resilient during downturns. Traditional factors, however, do not describe the full set of attributes that can impact a company’s resilience. Analyzing the various sustainability characteristics of companies – and how these characteristics contributed to performance – deepens our understanding of how sustainability reinforces resilience. This period of market turbulence and economic uncertainty has further reinforced our conviction that Environmental, Social, and Corporate Governance (ESG) characteristics indicate resilience during market downturns.
Learn about BlackRock's findings in the full report HERE