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Nordea analysis shows excess return on sustainability and active ownership bet

Nordea has gone through the literature for sustainable investments and concludes that the active ownership can generate nice excess returns on equities.

"Ten years ago, investors generally agreed that if you invested from an ethical and responsible perspective, you had to let go of the return. It's not like this anymore," Nordea's Head of Investments Kerstin Lysholm says. | Photo: PR/Nordea

Investors can achieve an annual excess return on stocks at between 1.9 and 3.5 percent by investing with an ESG (environmental, social and governance-related, -ed.) strategy combined with active ownership. Danish newspaper Børsen writes this on the background of a report conducted by Nordea concerning literature relating to the management aspect of ESG-related investments.

"Ten years ago, investors generally agreed that if you invested from an ethical and responsible perspective, you had to let go of the return. It's not like this anymore," Nordea's Head of Investments Kerstin Lysholm tells the newspaper.

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