A study from early 2025 examined how ESG-oriented investment portfolios performed during recent periods of market turbulence, including the COVID-19 crisis. The findings were clear: portfolios with high ESG scores experienced lower volatility and better downside protection than many traditional benchmarks. While these portfolios did not always offer the highest short-term returns, they consistently proved more stable—particularly in sectors such as renewable energy, health, and IT.

For educators and future investors, this is a critical insight. ESG isn’t just about ethics or compliance—it’s about building financial resilience. GenESG integrates these real-world findings into its learning materials, enabling students to test and simulate crisis scenarios and understand the strategic role ESG can play when markets are under stress.

Reference: Stenzel, T., & Nguyen, T. H. (2025). ESG investing and downside protection: Evidence from the European markets.