Finance is no longer just about allocating capital - it鈥檚 about driving transformation.
Our latest research reveals how behavioural indicators, not traditional ESG scores, can pinpoint companies truly leading the shift to a regenerative, inclusive economy.
By analysing over 1.3 million corporate initiatives across 86 countries, we鈥檝e identified patterns of action鈥擜dvocacy, Preparation, and Transformation鈥攖hat correlate with real-world impact and financial performance.
Companies showing transformational behaviours (like innovation and organisational change) consistently outperform their peers, delivering stronger returns and greater resilience.
For example - portfolios built around these leaders generated 2.52% more annual alpha鈥攎eaning they beat the market by that margin, even after adjusting for risk.
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We break down complex metrics like 鈥渁lpha鈥� (extra return above the market average) and 鈥淪harpe ratio鈥� (how much return you get for each unit of risk) into clear, actionable guidance.
Whether you're an investor, policymaker, or corporate leader, this report equips you to move beyond ESG and invest in real change - making finance the engine of a sustainable future.
Authors
Matteo Burato
Mojtaba Nouri
Filippo Pellegrino
Livio Scalvini
Shuying Wu