Responsible Investing/ESG
Leading US CEOs recently pledged to redefine the role of the corporation in society. But will they make good on their promises? Responsible investors need a clear way to evaluate whether a company is really making progress by doing good for both society and investors.
Sustainable investing is often misunderstood. Many investors think a sustainable agenda limits a portfolio to a narrow piece of the market. In fact, plenty of stocks can help investors create social benefits while generating strong returns—if you know how to find them.
There are many ways to apply responsible investing principles to portfolios. But some investing approaches may be more conducive to creating a portfolio with strong environmental, social and governance (ESG) qualities than others. Concentrated equities are a case in point.
The United Nations Sustainable Development Goals (UN SDGs) offer a good guide for investing in companies making a positive impact on society. But where do you begin? Start by drilling deeply into the SDGs themselves to identify investible themes.
Many equity investors want to help create social benefits while generating strong returns. Deploying a clear investment process that draws on the UN Sustainable Development Goals and integrates ESG factors in research can help investors achieve these twin goals.
From rising sea levels to catastrophic weather events, investors can’t afford to ignore the risks of climate change. Since many companies would be vulnerable if current climate forecasts materialize, asset managers may want to consider climate change in their equity research process and engage management teams on the subject.
Responsible investing mandates may be the ideal candidates for active management. Here’s why research matters in a purpose-driven portfolio.
No one organization is responsible for the advancement of women, and that means every organization is. Women’s empowerment starts with education. It continues with the ability to earn an equitable living, especially in fields where women are underrepresented, and crests with women playing leadership roles at work or owning their own businesses.
Boston Medical Center is redefining the role healthcare providers play in improving the health and welfare of the city’s residents. Now impact investors can have a hand in fostering better outcomes, too.
Investing in companies that have favorable ratings on environmental, social and governance (ESG) issues has become increasingly popular. But investors might do better targeting companies with poor ESG ratings and a clear commitment to mend their ways.
European companies often see engaged equity investors as the enemy. But there’s a new breed of activist investors who aren’t aggressive and share the same long-term interests as management. Let’s work together toward the best outcome for all stakeholders.
Analyzing companies’ behavior when it comes to the environment, social issues, and governance (commonly known as “ESG”) has become more commonplace for investors. But some firms need more attention than others—especially those in smaller frontier countries.
Values-based investing has come a long way—and society seems better for it. But what about investors’ bottom lines?