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Foundations of ESG Investing
ESG Foundation Intro
Many studies have focused on the relationship between companies with strong ESG characteristics and corporate financial performance. However, these have often struggled to show that positive correlations — when produced — can in fact explain the behavior. The Foundations of ESG Investing research, for both equities and fixed income asset classes, suggests that changes in a company’s ESG characteristics may be a useful financial indicator. ESG ratings may also be suitable for integration into policy benchmarks and financial analyses.
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Foundations of ESG Investing in Corporate Bonds
How ESG Affected Corporate Credit Risk and Performance
How ESG Affected Corporate Credit Risk and Performance
Did ESG add insights beyond credit ratings? How did ESG impact investment grade and high yield bonds? This paper extends our research on environmental, social and governance-related (ESG) investing from equities to corporate bonds.
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Foundations of ESG Investing in Equities, Parts 1-4
Nested Applications
Why ESG?
Why ESG?
Part 1: How ESG Affects Equity Valuation, Risk And Performance
Do better-performing ESG businesses outperform? Can changes in a company's ESG characteristics be a financial indicator? As published in The Journal of Portfolio Management
Benchmarks
Benchmarks
Part 2: Consistent ESG integration through ESG benchmarks
How can ESG indexes be used as benchmarks, for both the total portfolio and individual allocations?
Nested Applications
Passive
Passive
Part 3: Integrating ESG Into Passive Institutional Portfolios
How can ESG be integrated into passive allocations? Do passive ESG strategies differ by region (emerging markets, international (World ex U.S.) and U.S)? As published in The Journal of Index investing
Active
Active
Part 4: Integrating ESG Into Factor Strategies And Active Portfolios
How can investors effectively integrate ESG into factor-based and actively managed allocations?
Related Content
Related Content
What do ESG Ratings tell us about corporate bonds?
We found ESG Ratings added financial insights distinct from credit ratings.
Read the BlogHas ESG affected stock performance?
Are ESG characteristics tied to stock performance? Many researchers have studied the relationship but their results show more correlation than causality. We take a different approach.
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