COVID Expected to Accelerate Environmental, Social, Governance (ESG) Investments

How has COVID increased ESG visibility?

Social – Companies doing right by their employees, customers, and communities in this most trying of times will be noticed, remembered, and rewarded with increased business.

Environmental – The impact of humans on the environment has been demonstrated the with countless images showing the recent decrease in emissions. This new evidence is providing a new perspective on climate action.

An opportunity for investors

• Current ESG measurements are imperfect providing an opportunity for investors to overlay their own analysis to discover potential opportunity and risk.
• ESG is not fully reflected in stock prices. This is likely to change, presenting an opportunity for active stock pickers now.
• ESG is here to stay. It results in changes to consumption preferences, which in turn affect revenue and operating margins. Anticipating changes to ESG scores will provide a profit opportunity.

nasdaq.com | How a global pandemic could accelerate the ESG imperative