Applying ESG integration to mitigate risks, enhance returns
Experienced practitioners believe ESG integration requires all material value drivers of a company - ESG drivers and conventional financial drivers - to be captured and assessed so as to arrive at a more informed investment decision
WITH ESG now firmly on the radar of asset owners, we have seen owners assessing external portfolio managers to ensure that they are fully embedding environmental, social, and governance integration into their strategies and processes and not just bolting on ESG data and tools to their existing investment process. Many investment managers are not clear about what that means and what they need to do to better align themselves with these expectations.
This article summarises how experienced investors are approaching ESG integration.
Risk and opportunities
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