Sustainability 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 it merely as a tool to screen undesirable investments from a portfolio, sustainability became a risk factor in its own right, alongside traditional factors such as size, value, momentum, quality, low volatility and low beta?
This white paper from Risk.net - ESG: the new risk factor in your portfolio - charts the progress made in this endeavour and reveals how risk officers, managers and quants at leading buy-side firms are experimenting with sustainability as an 'alpha enhancement' to day-to-day risk management, to stay ahead of the pack and boost profit-and-loss margins.
Read insights from risk and sustainability leaders from firms such as PineBridge, Cardano and Universities Superannuation Scheme, as well as S&P Global Market Intelligence.
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