Ethical Performance
inside intelligence for responsible business


SRI approach ‘is worth 2%’

February 2003

Socially responsible investment can improve fund performance by more than two per cent a year, says a leading investment bank.

WestLB Panmure says its research ‘clearly suggests’ the risk-adjusted extra return of SRI funds ‘is as high as 2.1 per cent’.

The bank compared the financial performance of the Dow Jones Sustainability Index since its launch in 1999 against the Dow Jones Stoxx index family.

It also analyzed 95 studies of SRI financial performance and found that 40 showed positive performance while only four registered a negative effect.

Although the bank says that the research period was not long enough to be conclusive, it notes that ‘the frequently voiced hypothesis of a systematic return disadvantage of SRI’ was not supported.


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