A recent report published by Mercer supports the growing belief that considering environmental, social and corporate governance (ESG) factors has a positive impact on the return of an investment portfolio. The study, available on Mercer’s website, examines sixteen academic studies and finds that ten of them show evidence of a positive relationship between ESG factors and financial performance, while four find a neutral relationship and only two report a neutral-negative relationship.

The report also recognizes that ESG factors alone do not guarantee a positive financial return. Manager skill and commitment, as well as industry specific factors can have an effect on overall results.