Is your portfolio ignoring data about the companies you're invested in?
Recently, we've been talking about why so many investors call ESG or sustainable investing "full information investing." In the latest installment of ESJAY, we discuss how index investments are based on basic information like market value. On the other hand, ESG investing considers a huge array of data about each company, like their impact on climate change, gender and racial discrimination, or simply the strength and quality of their leadership.
Would you consider ESG investing to be full information investing? Let us know your thoughts.
Jay Lipman, a co-founder of Ethic, is driven by the need to address climate and environmental risks with the resources to which we each have unique access. He has been ranked among the Forbes 30 Under 30: Social Entrepreneurs. Born in the UK, he now lives in San Francisco. Previously, he managed the capital of ultra-high-net-worth investors in Deutsche Bank's cross-asset capital markets structuring and sales team.