This blog title is a solid myth. In fact, over the long term, the opposite is true. Socially Responsible Investing (now referred to as ESG- Environmental, Social & Governance investing.) not only can increase your investment returns but also reduce their volatility.* Here is a summary of their conclusions.
And here are the theories about why this effect occurs:
*Based on a study, "ESG and Financial Performance" by Tensie Whelan, Ulrich Atz, Tracy Van Holt and Casey Clark, CFA at the NYU STERN Center of Sustainable Business.
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