The drivers of environmental markets are deeply rooted and continue to gather momentum. Population growth, increasing urbanization, climate change, environmental policy and regulation, and inadequate infrastructure are profoundly shaping global markets.
What makes for an efficient financial market? Any market participant could probably list ten things without burning a calorie, but one thing that would probably make everyones list is information. Financial markets need information in order to work efficiently.
Smart beta and Environmental, Social and Governance (ESG) integration have both gathered strong momentum, with significant asset growth in strategies using each discipline. Multifactor smart beta strategies, with their longer-term focus and factor diversification, provide a natural platform for the integration of ESG.