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ESG fund manager integration still growing

Evidence is mounting that companies operating in a sustainable way outperform those that don’t, but fund managers still have a long way to go

Proponents of using environmental, social and corporate governance guidelines to aid investment decisions were given a boost this month.

Research by index provider MSCI showed that constituents of its MSCI World ESG index have outperformed the mainstream equivalent index by two percentage points over the past five years. Constituents of its Europe ESG index have also outperformed their mainstream equivalents over one, three and five years.

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