ESG is fundamentally a statement that man is more than Homo-Economicus. It is a movement driven by individuals who seek to harmonize their ideals with their work and their investments. This starting point of ideals, inexhaustible targets that are not completed but rather striven for, are next grounded in specific targets or values (phenomenon) that can me articulated, measured, and improved…on an asset by asset basis. It must be more that seeking to capture the zeitgeist, but needs to be data driven processes to achieve clear goals. When this is the case, good things happen.
B of A/Merrill Lynch published an article ‘ESG Matters — Global’ saying, “In [the] U.S., ESG has been a particularly effective signal of alpha (excess returns) over the past five years, potentially driven by the explosive asset growth and inflows into ESG-type strategies. Companies with high (top quintile) ESG ranks have outperformed their counterparts with lower (bottom quintile) ESG ranks by at least 3ppt during the time period (12 yrs).”
Apex Fund Services recently highlighted the need for this in Private Markets. Inveniam provides the tools for ESG measurement of assets with the ability to audit the data, compare, and contrast asset performance for empirical data driven ESG. #Inveniam