The evidence that sustainability, or ESG, has financial relevance continues to grow. As we look for reasons why sustainability seems to be associated with good performance, risk has emerged from the literature as one of the main contributors.
Volatility has returned, and we expect it to have continuing significance as we look out at 2019. In this environment, long-term investors who comprehensively assess risk, ESG factors and valuation have the potential to identify attractive opportunities at the asset class and security level.
There’s a boatload of research showing that companies with more diverse leadership teams outperform their less diverse peers.1 Businesses that know this are taking steps to diversify; businesses that don’t can benefit from a nudge.
Gender lens investing is gaining momentum – and for good reason. Research shows that integrating a gender lens into investment decisions can yield positive financial returns and help close the gender gap.