For Newton’s1 Raj Shant and Lloyd McAllister, ESG is more than just a buzzword: it opens the door to sustainable investing with the potential for superior risk-adjusted investment returns. But to get there does take effort.
- An increasing body of academic research shows companies that engage with ESG offer superior returns
- Even so, the terms used to categorise ESG investing are often vague and sometimes contradictory
- Investors who are serious about adopting an ESG approach need to take an active approach to really drill down and understand what companies in their portfolio are doing on the ground
- Three approaches to responsible have gained traction in recent years: exclusions and screening, active ownership and sustainable investing. Newton’s approach embraces all three.
1 Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds
The value of investments can fall. Investors may not get back the amount invested.