ESG Ratings: Solution or Starting Point
? “In our view, there’s no substitute for integrating consideration of ESG factors into fundamental security analysis. Rather than outsource ESG assessments to third-party providers, investors and analysts must conduct in-depth, hands-on research and engage actively with issuers. That approach enables investors to achieve real insight into a business and its activities, and to get a proper understanding of its future prospects as well as its past.”
[COMMENTARY]Most investors use the ESG raters because of convenience and rating expertise. Ideally, it’s probably best to do all the in-depth ESG research yourself. But what investors or organizations have the time, money, and resources to do that? (However, when I started as an analyst in 1970, that’s exactly what we did!)
ESG Ratings: Solution or Starting Point? By Michelle Dunstan, April 29, 2022, Advisor Perspectives, USA.