Proponents of ESG mixing strategies – i.e. so-called ESG integration strategies whereby ESG data and analysis are mixed with traditional financial inputs in the portfolio construction process – often claim that such an approach provides for the best results for ESG investors. We will take a closer look at such mixing strategies and underline several shortcomings.
Topics covered include:
• Analysing ESG strategies that mix ESG data with market data and/or traditional risk factors such as value or momentum in their portfolio construction processes.
• Compared with ESG Filtering, ESG “Reweighting” Techniques Lead to the Divestment of Companies with better ESG Credentials
• Optimising in Relation to Weighted Average ESG Scores Seriously Undermines Engagement.
• How ESG mixing can send the Wrong Message to Companies
Speakers:
• Erik Christiansen, ESG & Low Carbon Specialist, Scientific Beta
• Felix Goltz, PhD, Research Director, Scientific Beta