Article ID: 4e0e3ee9f054995dc0d11b9d4221f980c544f45cfe788b673deabdd9819f4d65
Source ID: regulatory:risk.net
Published At: -
Extraction Method: trafilatura
URL: https://www.risk.net/insight/esg/7955792/esg-the-new-risk-factor-in-your-portfolio
Body Text
This article was paid for by a contributing third party.More Information. ESG: the new risk factor in your portfolio Environmental, social and governance (ESG) is big business. Total investments in global sustainable assets ballooned from $5 billion in 2018 to $2.5 trillion by mid-2022. But what if, instead of viewing ESG merely as a tool to screen undesirable investments from a portfolio, it became a risk factor in its own right alongside traditional factors such as size, value, momentum, quality, low volatility and low beta? Risk officers, managers and quants at leading buy-side firms are experimenting with ESG as an ‘alpha enhancement’ to day-to-day risk management, to stay ahead of the pack and boost profit-and-loss margins. Sponsored content Copyright Infopro Digital Limited. All rights reserved. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy. If you would like to purchase additional rights please email info@risk.net Copyright Infopro Digital Limited. All rights reserved. You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5. If you would like to purchase additional rights please email info@risk.net
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