Portfolio Manager Patrick McDonough talks about the impact of increased data transparency in ESG investing, allowing for customized client exposures both from a sustainability and a risk perspective:
- With ESG data improving (and multiplying) almost daily, it takes a systematic manager to process the wide array of information quickly and determine the impact on a security’s ESG score.
- ESG solutions should reflect the sustainable investing goals of the client rather than those of an index provider.
- Active ESG investing doesn’t require an increase in material risk to a client portfolio. Rather, clients can choose the ESG metrics that are meaningful to them within their tracking error targets.