"In AQR Capital Management′s new paper – ’Assessing Risk through Environmental, Social and Governance Exposures’ – the firm said it found a strong positive relationship between companies′ ESG exposures and the statistical risk of their equity."
[COMMENTARY] In surveys where investment managers are asked about why they use ESG criteria, they frequently say to manage future risk. Now, AQR provides confirmation of that belief. With research appearing almost daily supporting the application of ESG in investment decisions, it seems that investors everywhere should be applying it. (To read the actual study,click here.)
ESG factors can indicate overall stock risk, says AQR, by Rachel Fixsen, March 20, 2017, IPE, UK.