DC Sponsors: 4 Questions to Ask When Adding ESG to Your Menu

As defined contribution participants increasingly demand more socially responsible investments, plan sponsors need to consider their ESG options.
Sep 14, 2017 3:00 PM ET
Sabrina Bailey, Global Head of Retirement Solutions

by Sabrina Bailey, Global Head of Retirement Solutions, and Mamadou- Abou Sarr, Global Head of ESG

Are ESG ratings being used to mitigate risk and gain opportunities?

ESG analytics and ratings have historically improved over the years. ESG ratings can now be used as a risk mitigation technique or an opportunity seeking technique. The highest-rated companies are evaluated versus competitors and should have lower risk and less potential for controversy. Ratings can flag companies that would worry a typical ESG investor, such as corruption at the board level. ESG ratings can help target companies to underweight in or eliminate from a portfolio.

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