To illustrate the anecdotal correlation between ESG factors and financial outcomes, we have used proprietary ESG scores from our global equities team.
It is clear that ESG investing is gaining traction. ESG risk should be analysed and measured just as any financial metric of risk is and investors ignoring it do so at their own peril.
Mitch Reznick is co-head of credit and Michael Viehs is manager, Hermes EOS, at Hermes Investment Management
KEY FIGURES
£16.4trn
Income held by millennials and ‘Generation Z’
27%
Millennials’ share of global population
4.6%
Fall in dollar spot index this year
2015-16
Period of major policy stimulus from China