Stock-level ‘inelasticity’ explains ESG boom, research says
Reluctance of ESG investors to sell holdings is pushing prices even higher
The prices of ESG stocks are being driven up largely because many of the investors that hold them simply refuse to sell, new research finds.
Stocks that meet environmental, social and governance (ESG) criteria have beaten the wider market by around 1.5% per annum over the past five years. But in the absence of surging demand, these stocks would have underperformed the market by 2.1% a year, according to Philippe van der Beck, a researcher at École Polytechnique Fédérale de Lausanne and the
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