In 2014, the University of Oxford reviewed 190 academic studies on the relationship between sustainability and firm performance finding:
80% of the studies suggested a positive relationship between good sustainability practices and stock performance.
88% indicated firms’ performance was improved by strong environmental, social and governance practices.
Performance Impact Study
A 2016 study by Shane Enete, Ph.D., CFA at Biola University’s Inspire Research Institute For Biblically Responsible Investing, has shown that applying certain biblical investment screening methodology to portfolio security selection generated outperformance in a portfolio when compared to broader, non-screened benchmarks. This finding adds new data to the debate of what effect biblically responsible investing (BRI) screening has on the performance of a portfolio. While screening a portfolio does not guarantee favorable returns, this study clearly shows that using biblically responsible investing does have the potential to provide outperformance when compared to a non-screened benchmark.
Sources: “Corporate sustainability and profitability are interrelated” - Oxford University, 2014 “Faith-based Investment and Sustainability” - Biola University 2016
Biola Study Results
“The results of the study found that the [biblical investing] methodology of security selection resulted in an annualized outperformance compared to the non-screened benchmark.”
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