A landmark study published in Economic Modelling (Boako et al., 2024) analyzed ESG investing across 23 developed markets using nearly two decades of data. Contrary to common belief, the findings showed that higher ESG scores don’t automatically lead to superior returns. However, companies with strong ESG performance often outperformed during periods of intense public and regulatory focus on sustainability—such as after climate policy announcements or major ESG-driven campaigns. This means the effectiveness of ESG investing is situational and depends heavily on timing and public attention, rather than being a universal advantage.

For GenESG, this reinforces the need to educate students not only on ESG principles but on how ESG works in real financial contexts. Through its curriculum, GenESG teaches learners to identify when ESG factors become relevant for investors and how to integrate those signals strategically. It’s about building ESG awareness that is dynamic, data-driven, and adaptable—not just ideological.

Reference:: Boako, G., Hassan, M. K., & Osei-Akoto, I. (2024). ESG investing and expected stock returns: Evidence from developed markets. Economic Modelling, 131