Investigating ESG For Alpha Generation

Environmental, Social and Governance (ESG) policies are an important measure of risk mitigation and are an alternative signal for alpha Emerging markets typically have less opportunity for ESG evaluation, but answers are available and incentive is high to uncover and evaluate [timeless] As man-made risks that include climate change, data privacy and corruption continue to grow and evolve, a company’s values and policies to mitigate against them through a developed ESG framework must be fit for purpose to protect long term growth and ensure investor support. As Mercer identified in 2015 -“Investment that considers sustainability isn’t about changing the world…