Understand the Difference between Esg as a Process Versus Esg as a Product


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Environmental, social, and corporate governance (ESG) factors have been gaining traction in the investment world in recent years, and the New York Times takes a look at what they're doing and how they're being used.

ESG is short for "environmental, social, and corporate governance," and it refers to factors that influence a company's bottom line, including how it treats its workers, the environment, and its shareholders.

The Times notes that many asset managers incorporate ESG considerations into their investment processes, but there's no "single correct way to use ESG information," so "there is no single correct way to use ESG information, and so we see considerable variation across asset managers in how they integrate ESG into their processes."

One big difference between traditional and ESG-focused funds is that traditional funds tend to focus on risk mitigation, while funds that emphasize ESG seek to avoid ESG "laggards" and emphasize ESG "leaders" in their portfolios.

"By doing this now, asset managers can help ensure durable risk-adjusted returns for investors over the long term," the Times notes.

The Wall Street Journal has a primer on the growing field. Read the Entire Article


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Environmental, social, and corporate governance (ESG) factors have been gaining traction in the investment world in recent years, and the New York Times takes a look at what they're doing and how...more





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