Quants are key to judicious ESG

Meaningful data analysis critical to future of socially responsible investing, writes Antonia Lim

Capital allocators have power – and with great power comes great responsibility.

As a factor for distinguishing prudent investments, good corporate governance is paramount. In the first half of 2020, £70 billion ($89.5 billion) of net global inflows poured into investments flagged ESG (environmental, social and governance). Meanwhile, other mutual and exchange-traded funds – excluding money market funds – lost almost five times that amount.

It’s the most significant divergence seen to date