Investment strategies integrating ESG factors were typically strategies that included a lot of quantitative research and subjective judgements. New investors are now using quantitative approaches to invest responsible.
Many more investors are using ESG criteria in their investment approach. According to Matt Moscardi, senior analyst in the ESG research team at MSCI, an increasing number of quantitative investors is using ESG factors too.
Still, successful investment models are not easily created in the area of ESG. “It is uncontroversial which of the factors are material [likely to have a meaningful impact on a given company or sector]. Then it is about how you make it quantifiable,” says Andreas Feiner from Arabesque Asset Management.
Please find more about quantitative ESG investing in the article in the Financial Times.