Why Invest Internationally in Companies With Strong ESG Practices?

To boost portfolio ESG quality and the potential for improved risk-adjusted returns
Oct 14, 2019 11:10 AM ET

Why Invest Internationally in Companies with Strong ESG Practices?

by Scott LaBreche, Director at Impax Asset Management 

The megatrends underlying the transition to a more sustainable economy, such as climate change and widening inequality, are global issues. It should come as no surprise, then, that companies are addressing sustainability risks and opportunities regardless of their domicile.

So investors may be wondering, how are companies in developed markets outside the U.S. and Canada performing on sustainability issues? It varies, of course, but on the whole, they are performing better than those in the U.S.

In this new October 2019 article I take a closer look at this ESG (Environmental, Social and Governance) quality phenomenon and share other takeaways about risk and performance from our experience managing the Pax MSCI EAFE ESG Leaders Index Fund — and its predecessor based on the same index — since 2011. The Fund uses an index-based strategy that seeks to track the performance of the MSCI EAFE ESG Leaders Index, consisting of equity securities with favorable ESG ratings in developed markets outside the U.S. and Canada. 

Read Scott full article herehttps://greenmoney.com/why-invest-internationally-in-companies-with-strong-esg-practices 

 

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