Best-in-class esg investment strategy in the Nordic stock market

This study analyses the impact of ESG ratings on investment strategies in the Nordic countries, particularly through the OMX Nordic Large Cap Index. Using data from 2007-2022, it analyses whether high ESG scores lead to higher returns in a best-in-class trading strategy. The analysis, which incorporates performance statistics and regression modelling, shows complex and varied outcomes of ESG investing influenced by market conditions. The results highlight the complex link between ESG performance and financial returns and emphasise the potential risks and benefits of ESG-focused strategies.