ESG and Economic Performance in Health Care

Investments in ESG-related activities require initial upfront costs which, from a theoretical standpoint, should be rewarded with improved financial returns and reduced risks in the long run. However, to date, whether these benefits will be reaped in reality remains uncertain. Focusing on top-ranking health care companies listed in European stock exchanges, results indicate a non-marginal degree of heterogeneity between ESG scores and economic performance indicators. This examination should support investment decision-making regarding the optimal sustainability profile set up to achieve by health care companies.