Why nuance matters in ESG investing

InvestorDaily

Investors need to consider both opportunities and risks in ESG investments, gold partner of the 2023 ESG Summit, State Street Global Advisors said. The asset manager’s head of investments in Australia, Jonathan Shead, said ahead of the ESG Summit 2023 that he believes it is best to apply environmental, social, and governance (ESG) considerations across a broad portfolio, including core holdings, rather than individual sectors. “You might take energy companies for example. It’s not necessarily a question of saying that you don’t want to own energy companies. It’s about asking which energy companies are best positioned to deal with energy transition in the future,” Mr Shead told InvestorDaily.

“It may not be which companies in the industrial sector have the poorest governance. It’s which companies across the whole universe have particularly strong or poor governance. “We tend to think of this as an across-all-sector proposition, where you’re looking for the best risk management and the best return opportunities across all sectors.”

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