Macro Analysis /
United Kingdom

GB : Strategy - Is there an ESG bubble forming?

    Joachim Klement
    Joachim Klement

    Analyst - Strategy, Accounting, and Sustainability (SAS)

    Follow
    David Mak
    David Mak

    Analyst - Strategy, Accounting, and Sustainability (SAS)

    Follow
    CGS-CIMB
    13 April 2021
    Published byCGS-CIMB

    Investors sometimes are concerned that the strong performance of ESG stocks in recent years has led to the formation of an ESG bubble as large sums are invested in these themes and stocks. We show that currently, there are no signs of an ESG bubble since valuations are very much in line with global stock market valuations and expected growth rates are reasonable and lower than for other growth stocks. But investors who are concerned about overplaying the ESG hand can use our Liberum Climate Portfolio to find stocks that benefit indirectly from a transition to a more sustainable economy.