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We believe that Environmental, Social and Governance (ESG) issues can have a material effect on company fundamentals, in terms of both opportunities and risks, and that ESG analysis can highlight latent risks and provide early warning signals of a potential deterioration of company fundamentals. It also seems common sense to think that companies with good governance, responsible social policies and a sustainable approach to the environment will tend to fare better over the long term. Yet this remains difficult to quantify. In this paper, we take a hard look at the existing academic and empirical research to determine the materiality of ESG impacts on companies’ financial and economic performance, in the short and long terms.