Question
Do you think that the COVID pandemic would energize socially responsible investment (SRI). What is the role of ESG in SRI? https://en.wikipedia.org/wiki/Environmental,_social_and_corporate_governance ESG ESG refers
Do you think that the COVID pandemic would energize socially responsible investment (SRI). What is the role of ESG in SRI?
https://en.wikipedia.org/wiki/Environmental,_social_and_corporate_governance
ESG
ESG refers to the environmental, social, and governance practices of an investment that may have a material impact on the performance of that investment. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyondtechnical valuations. While there is an overlay of social consciousness, the main objective of ESG valuation remains financial performance.
SRI
Socially responsibleinvestinggoes one step further than ESG by actively eliminating or selecting investments according to specific ethical guidelines. The underlying motive could be religion, personal values, or political beliefs. Unlike ESG analysis which shapes valuations, SRI uses ESG factors to apply negative or positive screens on the investment universe. For example, an investor may wish to avoid any mutual fund orexchange-traded fund(ETF) that invests in companies engaged infirearms productionbecause they hold anti-conflict beliefs. Alternatively, an investor may opt to allocate a fixed portion of their portfolio to companies that contribute to charitable causes.
Link:https://www.wsj.com/articles/coronavirus-pandemic-could-elevate-esg-factors-11585167518
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