Today, long-term investing is an investment strategy that explicitly seeks to perform competitively rather than simply representing an ethical stance on behalf of investors. An increasing amount of research around the materiality of ESG issues, together with demand from regulators, clients and beneficiaries, are among some of the key drivers behind the adoption of long-term investing strategies. Our experts work with with investors to identify best practices in ESG integration and understand how these insights can be translated into decision-making and applied to fundamental analytical frameworks and valuation models. We help clients to discover opportunities for outperformance while managing the associated risks through analysis and development of appropriate mechanisms for risk management.
The Aviva Investors equity quant team wanted to better understand if their proprietary quant model could be enhanced through the integration of environmental, social and governance data sourced and/or captured by their global responsible investment team.
Sustainable & Responsible investment: How to make it work
An increasing number of investors have committed to integrating environmental, social and governance (ESG) issues in their asset allocation decisions. This is good: we should invest our money according to our values. The question is, how we can build a better understanding of the value implications of sustainability investments?
ESG Integration in Investment Management
Our aim in this article is to set the record straight on the financial performance of sustainable investing while also correcting a number of other widespread misconceptions about this rapidly growing set of principles and methods.