A performance opportunity
We believe that in the current context of low growth and collective awareness of the challenges of sustainable development, the growth of sectors that we identify as "sustainable" are more promising today than in the past.
Moreover, studies* have shown that companies whose non-financial performance (ESG) improved saw their prices outperform the indices, particularly in the case of companies with average or low ESG scores. Thus, the "momentum" of score improvement appears as a performance driver from which we can benefit.
Conversely, companies whose behaviours are "controversial" tend to underperform the market. Therefore, it is important to identify these extra-financial issues that are not taken into account by the market.
* cf Jeroen Bos, Sustainability Scores for Investment Funds, CFA Institute Magazine March 2017