Do Investors Need To Sacrifice Returns To Reward Strong ESG Performers?


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One of the fastest-growing areas of investment is "socially responsible investing," or ESG, which focuses on a company's social, environmental, and governance practices.

But while some see it as a way for investors to lessen their impact on the world around them, others see it as a way for companies to boost their stock prices.

One such company is Sentifi, a firm that analyzes online chatter and other data to determine whether a company's practices are on the up and up.

It found that companies in Sentifi's portfolio performed better than the S&P 500 over a three-year period when sentiment was weighted against the industry, sector, and index as a whole, Bloomberg reports.

"The answer lies in the data investors are using to assess a company's ESG performance," says Marina Goche, Sentifi's CEO.

"If equipped only with traditional ratings, investors will be unable to accurately evaluate ESG performance.Is this lack of data forcing investors to choose between achieving returns and investing in companies with strong ESG performance?" she asks in a blog post.

"The answer lies in the data investors are using to assess a company's ESG performance that are uncensored and delivered without delay." Read the Entire Article


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