Sustainable investing is under increased scrutiny, as a series of proposed and upcoming regulations start to take effect. Selecting an strategy that can effectively meet a rolling list of governmental requirements is only one of many hurdles facing ESG investors. Many ESG options are limited in their ability to provide a transparent, cost-effective approach that takes individual circumstances into account. Asset owners are confronted by lack of consistency in ESG analysis and measurement, data disclosure and regulatory requirements. Since neither firms nor ratings providers/indices are held to uniform standards, it can be hard to decipher the actual level of ESG vs. “greenwashing” that goes on.
At QMA, we applied 40+ years of quantitative investment experience to help solve these problems. Our ESG framework Evaluates, Expands and Integrates ESG exposures in a process that is:
- does not compromise performance (alpha-neutral)
- flexible enough to accommodate investor ESG preferences
Our customized approach offers ESG exposure at the same price point as non-ESG offerings across the risk-return spectrum.