This isn't my first rodeo when it comes to environmental social and governance (ESG) investing – a widely used but often misunderstood term encompassing many non-financial issues that may interest consumers and should be considered by businesses and investors.
Listen in as Jim Dorment (head of value and portfolio manager) and Laura Kane (head of ESG research) gather to peel back the layers on key topics facing ESG investors today.
How are E, S and G evolving? takes a look at critical changes in how investors assess each component of environment, social and governance factors. It’s not enough to focus (rightly) on the low-carbon transition—there are issues of labor disruptions caused by the transition to consider as well.
Performance is the focus of Where will the next wave of ESG alpha come from?, shining a light on the difference between divesting “bad ESG” companies vs. including and engaging companies to find those likely to be voted “Most Improved in ESG.”
Taking the tough questions head on, Do ESG critics have a point? raises issues such as ESG’s recent underperformance (and the problem with generalizing issues about ESG), the veracity of impact investing and the troubling lack of clarity on ESG product labeling.
In What’s unique about Voya’s approach to ESG?, Jim and Laura dive into processes and tools, including our proprietary V-score, that make ESG a meaningful part of investment decisions in Voya’s equity strategies.
In the drive for ESG investing, a gap has arisen between corporate bond and securitization markets. We see this as an opportunity to blaze new trails and influence better outcomes for investors, the environment and society.
While it might seem better to focus on current so-called ESG leaders, we believe there is untapped value in the underappreciated ESG improvers.
The breadth and depth of Environmental, Social, and Governance data that investors currently have at their disposal is “a good problem to have”, as it highlights the normative sea-change over the past decade towards a now crucial commitment that companies must make to ESG transparency. Machine learning can help in discerning – and when necessary, creating - signal from noise.
The ABCs of ESG investing
Seeking effective ESG integration that puts alpha over ratings