Materiality Matters: The ESG Factors That Count
Source: SeekingAlpha
2025-05-22 05:56:00 ET
Summary
- As ESG factors help contribute to—or detract from—security returns, it makes sense for active investors to integrate them into security selection.
- Factor attribution using historical returns can reveal how ESG factors have contributed to investment returns in the past, whether for a sector or an entire investment universe, in equities or in bonds.
- Understanding the effect of ESG factors on performance is most valuable in the context of broader research into how well a company is managed.
By Patrick O'Connell, CFA, John Huang, CFA and Erin Bigley, CFA
The materiality of ESG factors differs across sectors and markets. Investors need to understand how.
Read the full article on Seeking Alpha
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Materiality Matters: The ESG Factors That Count
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