Risk.net
Sponsored by ?

This article was paid for by a contributing third party.More Information.

ESG: the new risk factor in your portfolio

ESG: the new risk factor in your portfolio

Environmental, social and governance (ESG) is big business. Total investments in global sustainable assets ballooned from $5 billion in 2018 to $2.5 trillion by mid-2022. But what if, instead of viewing ESG merely as a tool to screen undesirable investments from a portfolio, it became a risk factor in its own right alongside traditional factors such as size, value, momentum, quality, low volatility and low beta?

Risk officers, managers and quants at leading buy-side firms are experimenting with ESG as an ‘alpha enhancement’ to day-to-day risk management, to stay ahead of the pack and boost profit-and-loss margins.

Download the white paper

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: