Diversity, employee benefits, and greenhouse gas (GHG) emissions.
These are just some of the key environmental, social and governance (ESG) considerations that are rapidly becoming essential to investment analysis and portfolio selection as institutions and financial professionals embrace sustainable investing.
It’s a trend that has only grown this year with investors pumping record sums into ESG funds during the early months of the pandemic. According to Morningstar, assets under management in what it calls sustainable funds globally hit a record high of $1.3 trillion as of the end of September, up 19 percent from June. Their relative out-performance has been attributed to heightened appetite among investors for exposure to sustainable businesses as companies face greater scrutiny over how they are managing their response to the pandemic, which has brought the social element of ESG to the forefront in particular.
But what about the data u…