Steps remain to fully integrate ESG. (Article also reviews important new ESG study.)

Steps remain to fully integrate ESG. (Article also reviews important new ESG study.)

"Across all 12 industries, the positive effect on equity return is 6.12 percentage points higher for ESG companies on average. And, if one looks at only the eight industries with clearly higher ESG returns, this difference jumps to an average 14.08 percentage points for ESG companies compared with their peers…

Adding ESG to fundamental analysis is akin to presenting magnetic resonance imaging to medical practitioners used to X-rays. It is likely a game-changer in the way we operate in capital markets. But we have to be careful and creative in order to capture its full potential."

[COMMENTARY]Terrific new research and great observations about the use and issues around implementing ESG in portfolio construction. Downloadstudy referred to in the article.
Steps remain to fully integrate ESG, by Rodrigo Tavares and Daniela Barone Soares, January 25, 2017, Pensions&Investments, USA.

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