Todays lesson - ESG. ESG stands for Environmental, Social and Governance. There is growing evidence that suggests that ESG factors, when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages. ESG has become shorthand for investment methodologies that embrace ESG or sustainability factors as a means of helping to identify companies with superior business models. ESG factors offer portfolio managers added insight into the quality of a companys management, culture, risk profile and other characteristics. “Companies that are considered leaders in ESG policies are also leading the pack in stock performance by an average of 25%.” —Goldman Sachs OK, so whats this got to do with anything? Our good friends at WWF know about ESG, The World Wildlife Fund (WWF), the world’s leading conservation organization, works in 100 countries and is supported by close to 5 million members globally. Sustainalytics has been engaged by various WWF country offices, including the U.S., Russia, Canada, and the Netherlands, to assess the WWF’s exposure to reputational risks related to its formal partnerships with large companies. By leveraging our own ESG assessment framework, Sustainalytics analyses the ESG performance of prospective partners in order to determine the level of reputational risk to WWF. The analysis takes into consideration the company’s current reputation, the strength of its management systems and programs, and its exposure to and preparedness for future controversy. Fundamentally, the assessment considers the degree to which the company’s values align to WWF’s mission. The final assessment and recommendations provide WWF with the intelligence required to make final partnership decisions. They also provide an initial roadmap for WWF to use in collaboration with the partner to improve overall ESG performance. sustainalytics/wwf-leveraging-esg-and-controversy-analysis-assess-partnership-risk Nice to know that your monthly donations to WWF are paying some company to make sure WWF dont accept money from someone who might be controversial in the future. Better then saving the rhinos!
Posted on: Wed, 12 Mar 2014 10:38:05 +0000
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