Doing good really does pay: the financial case for sustainable investing

Wednesday, December 3, 2025
Tony Wirjanto

New research from University of Waterloo School of Accounting and Finance Professor Tony Wirjanto, shows that sustainable investing isn't just ethically appealing — it's financially smart.

By comparing three ESG-focused investment strategies across major U.S companies, the study finds that portfolios incorporating environmental, social and governance data consistently outperform traditional benchmarks. Thematic ESG investing, in particular, delivers the strongest and most resilient returns, even during periods of economic stress like the COVID-19 pandemic.

The findings provide clear evidence that responsible investing and strong financial performance can go hand in hand, reinforcing the mission of the Hub for Sustainability Integration.