Goldman Sachs highlights “the metrics that matter, a ‘mainstream’ approach to ESG.”
Seeking to identify companies with long-term growth potential, Derek Bingham of Goldman Sachs Research’s GS SUSTAIN team and his colleagues study which sustainability measures most closely align with returns over time.
Investors can improve their risk analysis and returns, he says, by identifying sustainability metrics that offer hard data (e.g., resource efficiency for a metals company, employee turnover for an investment bank) that correlate with a company’s long-term stock performance.
There is an opportunity for portfolio managers to identify which ESG metrics matter most and invest accordingly.
Bingham recommends a “holistic view” and discourages the “silo” effect.
Listen to the Goldman Sachs podcast Episode 63: The Metrics that Matter – A ‘Mainstream’ Approach to ESG”
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“Episode 63: The Metrics that Matter – A ‘Mainstream’ Approach to ESG” | Derek Bingham, GS SUSTAIN, Goldman Sachs Research, & Jake Siewert, Global Head of Corporate Communications, Podcast: ‘Exchanges at Goldman Sachs,’ recorded 2 May 2017