ESG Essentials: Clearing the Mist of Sustainable Investing
From AXA IM, a framework for retail investors to evaluate ESG strategies and good data points on performance-
With investors increasingly focused on sustainability themes, investment managers need to apply proprietary frameworks to all strategies in an effort to close any ESG-related gaps. AXA proposes 10 metrics to help investors assess ESG integration in practice.
Notably, based on our market analysis in Q1 2020, stocks we consider to be ‘ESG Leaders’ outperformed those defined as ‘ESG Laggards’ by 16.8%. In fixed income, meanwhile, corporate bonds in the ESG Leaders category outperformed those in ESG Laggards by 5.2%. For both asset classes, the ESG Leaders’ basket also outperformed its parent benchmark index.