Investments in renewable energy, sustainable infrastructure, human capital and healthy living, among other inclusive factors
As investors become more comfortable with integrating environmental, social and governance (ESG) factors into their portfolios, the investment focus is poised to grow exponentially in the next decade. At least that's the story that Linda Zhang, PhD, head of Purview Investments, believes to be true.
Zhang believes that the full integration of ESG analysis into investment portfolios "will eventually become part of mainstream portfolio construction processes." Accordingly, now is the time for advisors to learn about ESG and how it will affect their work.
"The current ESG ETF landscape is far from perfect," says Zhang, "with [its] focus on individual factor analysis." She believes that, through better company-focused due diligence, advisors can help their clients start integrating ESG more effectively into their portfolio strategies.
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