Posted inESG

Do portfolio managers resent having ESG imposed?

Isabel Reuss

Portfolio managers have changed their perspective on environmental, social, and governance (ESG) factors as they understand it generates alpha, according to Allianz Global Investors.

The firm’s director, senior portfolio manager, European SRI equities Isabel Reuss said portfolio managers now understood the risks of not incorporating ESG into their investments but that simple measurements for analysing companies was not adequate.

“I think when one looks at what we analyse an environment you have to look at if the company has a clear pathway for a two-degree economy or not and that is not only the carbon footprint it might also consider a lot of other things in it,” she said.

Watch the video above to find out what other considerations fund selectors should have when it comes to ESG analysis.

Jassmyn Goh

Jassmyn reported from Sydney to New York to Jakarta before joining Expert Investor. She was most recently Features Editor at Money Management and Super Review in Sydney.

Part of the Mark Allen Group.