Posted by Nathan Miller, Unit Trust Equity Portfolio Manager on Oct 17, 2018, in Equities
Environmental, social and governance issues can present material issues for companies
More than ever, people want to be fully informed about what they are eating – not only the calories, but whether it’s gluten-free, pesticide-free, organic or raised with growth hormones. They even want to know if the packaging is recyclable. Why? Because they’re seeking to avoid risks to their health and to the environment. In the same way, investors today are well aware that risk can come from a variety of places – and that’s helping to fuel an interest in environmental, social and governance (ESG) investing.
What is ESG?
Environmental and social issues include food, water and energy security; access to natural resources; climate change; human rights; and supply chain labor standards – and these can present material issues for businesses and the corporate world. Poor corporate governance practices – such as corruption, lack of board diversity or poorly designed executive compensation plans that are not aligned with investor interests – can also impact shareholder value.
While traditional investment analysis has…
