The biggest challenge when it comes to sustainable investing is data measurability and availability. Quantifying E, S and G factors is a difficult task, especially when more than 80% of ESG information available at this stage relates to policy statements, rather than material or numeric metrics, Goldman’s Barrs says.
Bloomberg Intelligence analysts say it’s not so much “about E, S or G but about niches that differentiate asset managers.” The analysts say that in general, ESG tends to “provide a buffer during downturns, but fails to keep pace when the market heats up.”
--With assistance from Ksenia Galouchko.
This article was provided by Bloomberg News.