How ESG Is Impacting Financial Performance in Asia

ESG Research Specialist, Lightbulb Capital

Simon Peladeau

ESG Research Specialist

Lightbulb Capital

Thematic (Sector/Industry)

China Consumer discretionary / Thematic (Sector/Industry)

A backtesting of over 1000 companies across Asia Pacific ex-Japan since 2010 was conducted to analyse alpha relationships of Environmental metrics. The findings suggest that the following 5 Environmental metrics add alpha: Energy Usage (3.35%), Biodiversity Impact Policy (1.83%), Climate Change Policy (1.66%), Water Efficiency Targets (1.05%)and Waste Reduction Policy (0.20%).

A backtesting of over 1000 companies across Asia Pacific ex-Japan since 2010 was conducted to analyse alpha relationships of Environmental metrics. The findings suggest that the following 5 Environmental metrics add alpha: Energy Usage (3.35%), Biodiversity Impact Policy (1.83%), Climate Change Policy (1.66%), Water Efficiency Targets (1.05%)and Waste Reduction Policy (0.20%).

5 Alpha Generating Environmental Metrics