In this article, Pax analyzes the effect ESG factors have on non-U.S. developed markets risk and returns. Performance attribution of the Pax MSCI EAFE ESG Leaders Index Fund shows that companies with strong ESG profiles positively contributed to performance.
A wealth of literature, from both academia and financial institutions, supports the idea that when sustainability is used in investment, returns do not suffer, and often outperform traditional investment.
Think of sustainability analysis the same way you think of financial analysis. Different approaches to the same multifaceted problem are a source of innovation, a way that smart and insightful people can distinguish their work.
The earth’s climate is becoming warmer because of things we (humans) have done. Since the climate, along with the atmosphere and water, forms the infrastructure of our lives, climate change will affect us pervasively.