Is there a premium for low-carbon-intensity European equities?
- 2022 was only the third year in 12 when a key ESG leaders index has underperformed the broader market
- From a pure carbon intensity perspective, the best performing companies appear to outperform their European peers over the longer term
- The most carbon-efficient companies may offer greater diversification relative to ESG indices and European benchmarks to a larger extent
- The best-performing low-carbon intensity companies appear to less impacted by the real rates regime compared to growth stocks
- A carbon efficiency strategy may offer an interesting complement for stock pickers