Materiality Check: The Next Stage of ESG and Responsible Investing
Detecting Meaningful Risks—and Opportunities
What do many of these ESG issues have in common? In most cases, regulation is increasing globally. Companies that run afoul of the rules could face reputational risk, penalties and sanctions, which may impede efforts to boost revenue and earnings and incur costs.
At the same time, proactive companies with solutions to ESG challenges can enjoy profitable opportunities. Examples include companies that help building infrastructure become more energy efficient, manufacturers of alternative energy equipment and companies that are enabling access to medicine or technology.
When ESG risks and opportunities are material, we believe it would be remiss for an investment manager not to consider them…
