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At the sector level, all 11 sectors recorded an increase in the number of companies citing “ESG” on a quarter-over-quarter basis. The Industrials (+10), Health Care (+8), Financials (+7), Information Technology (+7), and Real Estate (+6) sectors witnessed the largest increases in the number of companies citing “ESG” on earnings calls in Q4 compared to Q3. These five sectors accounted for 76% (38) of the total increase (50) for the index.1
Moreover, 154 S&P 500 S&P 500 companies cited “Biden” or “administration” (in reference to the Biden administration) on earnings calls for Q4 2020. For these 154 companies, the government policy that was cited or discussed by the highest number of S&P 500 companies (50) in conjunction with their comments on the Biden administration was climate change and energy policy.
Thus, is it possible the change in presidential administration contributed to the large increase in the number of S&P 500 companies citing “ESG” on earnings calls in Q4 2020 compared to Q3 2020? Of the 129 S&P 500 companies that cited “ESG” on earnings calls for Q4 2020, 48 also cited “Biden” or “administration” on the earnings call. Of these 48 companies, 26 discussed climate change and energy policy in conjunction with their comments on the Biden administration - FactSet
Metric | UpDn | This Week | Prior Week | Comments |
---|---|---|---|---|
Forward 12-mo Estimate | 🔵 | 174.59 | 174.19 | vs. @December 31, 2020 159.02 |
Forward 12-mo PE | 🔵 | 22 | 21.9 | vs. @December 31, 2020 26x |
Earnings Yield | 🔴 | 4.54 | 4.57 | vs. @December 31, 2020 4.23% |
2y Combined Average Growth Rate % | ⚪️ | 5 | 5 |
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