Knock-on effects: material issues

Published Tue, Sep 3, 2019 · 09:50 PM

INSTANT global communication and the immediacy of social media can leave a company's reputation in tatters within hours. For this reason, being able to identify and understand any material reputational issues - including environmental and social - that might impact the sustainability and direction of future returns for a company has become increasingly important.

Using ESG scores alone may not be sufficient to determine potential ESG factors. Considering each company (and any environmental or social factors) individually is key to identifying material risks that could have a significant impact on the fortunes of the company. During our research, we have also found there are common issues within sectors.

Pricing matters