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In a previous post, I showed how ESG screening substantially improved a strategy focused on profitability (long-short ROE) that was both sector-neutral and style-neutral. The main point was to reveal the true impact of ESG on equity performance by removing unintended influence. I didn't discuss a separate point: The lesson for 2024 on how risk control was used to remove the unintended influence of the COVID market crisis.

Is there investment value in ESG? It's hard to think of a more polarizing investment topic. Regulators, investors, politicians, and academics have all weighed in. Money has been leaving sustainable funds because of disappointing returns.