Post by arfankj4 on Mar 6, 2024 3:50:16 GMT -6
More and more CEOs are leading their organizations to get seriously engaged with ESG issues. At the same time more investors are using the reported ESG data in their capital allocation decisions. On average our study found that only about percent of data in any given industry is material from an investment standpoint. That has huge implications in terms of the signal to noise ratio. For example climate change management is very important for oil and gas firms and energy companies whereas it s not that important for financial institutions.
Affordability is iportant for healthcare companies but less so for tech companies. If you understand which percent is important you have a real advantage. SASB helps provide this kind of information via a materiality map Poland Mobile Number List for each industry. In our paper we take those maps and construct scores showing how different companies are investing on material ESG issues. That allows investors to construct better risk profiles and portfolios that will perform much better. Companies that focus their efforts on key ESG issues tend to have the best future investment performance.
Q Why is that A If we have better information around ESG issues and it is communicated and used more effectively then that information will be incorporated into stock prices and affect the cost of capital. If that happens capital markets will provide incentives for companies to behave responsibly and companies will exhibit those behaviors because they ll have lower costs if they do. But that will depend on organizations like SASB and to what extent they re successful in creating a better information environment for both companies and investors.
Affordability is iportant for healthcare companies but less so for tech companies. If you understand which percent is important you have a real advantage. SASB helps provide this kind of information via a materiality map Poland Mobile Number List for each industry. In our paper we take those maps and construct scores showing how different companies are investing on material ESG issues. That allows investors to construct better risk profiles and portfolios that will perform much better. Companies that focus their efforts on key ESG issues tend to have the best future investment performance.
Q Why is that A If we have better information around ESG issues and it is communicated and used more effectively then that information will be incorporated into stock prices and affect the cost of capital. If that happens capital markets will provide incentives for companies to behave responsibly and companies will exhibit those behaviors because they ll have lower costs if they do. But that will depend on organizations like SASB and to what extent they re successful in creating a better information environment for both companies and investors.