ESG not an investment handicap
Responsible investment has received yet another boost with a new report finding that good environmental, social and corporate governance (ESG) factors don’t automatically equate to reduced performance levels.
The Mercer and United Nations report, Demystifying Responsible Investment Performance, concluded that taking wider factors into account in the investment management process, such as ESG, did not penalise performance.
It also found that responsible investment could be implemented across a wide variety of investment styles.
The findings support statements made in another, unrelated study, conducted by the Responsible Investment Association of Australasia (RIAA).
As reported on moneymanagement.com.au last week, the RIAA report revealed that investment portfolios incorporating companies that successfully manage ESG issues outperform more traditional portfolios.
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