ESG and quant investing

There’s a lot of talk about the importance of environmental, social and governance (ESG) issues in investment decisions, but is there sufficient action? And if there is, what does that action look like, and can it deliver on performance as well as moral objectives? When the chief executive of the world’s largest asset manager, BlackRock, said that “a company’s ability to manage environmental, social and governance matters demonstrates the leadership and good governance that is so essential to sustainable growth”, and that “ESG will be increasingly material to corporate valuations”, it’s clear that ESG has finally moved into mainstream investment management.

Add to that the fact that private equity and hedge fund managers are present and vocal at ESG conferences, when 10 years ago they would have considered these events peripheral, and it’s clear the relationship between ESG and investors has changed. It is no longer possible to ignore the science of climate change, nor deny the conclusion that we are at a tipping point in terms of the global environment. Action needs to be taken, now.

The rest of this article can be found at investordaily.com.au.