The bigger ESG picture.

Some investors only care about unconstrained investment returns; others have a greater sense of social responsibility alongside a belief that an ESG slant helps avoid investment risks and acts as an enabler of future returns.

We ascribe to the second view, but problems can arise from a misunderstanding of what an ESG system is good at doing. ESG approaches are built to be scalable and hence tend to be largely systematic. This satisfies our desire to press a button, and quickly have a set of standards that can be applied across a wide range of investment products, but it can also create some challenges.

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