ESG stands for Environmental, Social and Governance. There is growing evidence that suggests that ESG factors, when integrated into investment analysis and portfolio construction, 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 company's management, culture, risk profile and other characteristics. By adding this increased level of scrutiny associated with ESG analysis, Pax World seeks to identify companies that:

  • Are leaders in their industries
  • Are better managed and are more forward-thinking
  • Are better at anticipating and mitigating risk
  • Meet positive standards of corporate responsibility
  • Are focused on the long term

Integrating ESG Analysis to Manage Indeterminite Risk

Considering ESG factors can enhance portfolio management as well as meet the needs of two growing demographics – women and millennials.