Sustainable companies less often involved in scandals according to study
Published: Thursday, Sep 5th 2024, 11:40
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Companies that pursue sustainable goals are less susceptible to scandals such as corruption, fraud or environmental pollution. This is the conclusion of a new study by asset manager Robeco and the University of Zurich.
The study took into account the alignment of companies with the United Nations Sustainable Development Goals (SDGs). From this, it calculated the probability of being involved in a scandal in the coming year.
According to the data, the impact was strongest when it came to involvement in "very serious" scandals. These results also varied depending on the industry. For example, companies in resource-intensive industries such as oil production or coal mining were more susceptible to accidents that could escalate into scandals. They are also under greater public scrutiny.
According to the authors of the study, these findings can influence investment decisions. This is because scandals damage the reputation of companies and often reduce investor confidence. Aligning investment portfolios with the SDGs therefore helps to reduce the likelihood of scandals.
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