Investors and ESG Rankings
How many investors care about ESG ranking?
Almost 8 in 10 investors believe that environmental, social and governance (ESG) factors are important to the performance of their investments.
Two-thirds of investors polled in a Natixis survey said they would consider an investment product or manager with a strong ESG rating, even if it had a lower return than a comparable product or manager without such a rating.
Why do investors care about ESG ranking?
ESG ratings provide a way for investors to compare the environmental, social and governance policies and practices of investment products. They also can indicate how well a company is managing sustainability risks and opportunities.
ESG ranking is important to investors because it provides insights into a company’s environmental, social and governance performance. This information is valuable to investors as they can use it to make more informed investment decisions.
ESG ranking also helps to highlight companies that are leaders in sustainable practices, which can be attractive to investors looking to align their investments with their ethical values. Additionally, ESG ranking can be used to identify companies that may have a higher risk of environmental or social disasters, allowing investors to avoid these companies if they wish.
Top reasons why investors care about ESG Rankings
These are the top 10 reasons why investors care about ESG ranking:
- ESG ranking provides insights into a company’s environmental, social and governance performance.
- Information from ESG ranking is valuable to investors as they can use it to make more informed investment decisions.
- ESG ranking helps to highlight companies that are leaders in sustainable practices, which can be attractive to investors looking to align their investments with their ethical values.
- ESG ranking can be used to identify companies that may have a higher risk of environmental or social disasters, allowing investors to avoid these companies if they wish.
- ESG ratings can help to benchmark a company’s sustainability performance over time.
- ESG ratings can identify opportunities for companies to improve their sustainability performance.
- Investors can use ESG ratings to screen potential investments.
- ESG ratings can help to improve investment returns and mitigate risks.
- ESG ratings can help investors to make more responsible and sustainable investment choices.
- ESG ratings provide a valuable resource for investors looking to engage with companies on environmental and social issues.