Welcome to the new morningstar.hk! Learn more about the changes and how our new features help your investing success.

Sharpening the Tools of the ESG Investor: Morningstar’s View

Improvements to ESG metrics and disclosures matter for all investors.

17 August, 2020 | 19:31
Facebook Twitter LinkedIn

Globally, more and more investors are putting their money in sustainable investments. In the United States, mutual funds focused on sustainable investing attracted more than $20 billion in assets in 2019, more than four times the flows in 2018. And investor interest in sustainable funds has been even higher in Europe, with more than EUR 35 billion in new net assets each year since 2016. In 2019, fund flows reached a new record for European-domiciled funds of EUR 120 billion, according to Morningstar data.

And this is not a trend that is separate from mainstream investing. Rather, conventional investors are increasingly incorporating analysis of environmental, social, and governance, or ESG, factors into their process.

Morningstar’s own long-term investment philosophy also embraces the use of these factors, as they can materially affect a company’s future financial performance. We find a company’s long-term profitability and growth are consistent with a business model that leads to community well-being, engaged employees, and shared values with customers. Therefore, our analysts need a detailed view of ESG factors to determine the likelihood that a firm will continue to generate or expand cash flows.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

About Author


Audience Confirmation

By clicking "accept" I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See "Cookie Consent" for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All Rights Reserved.      Terms of Useund      Privacy Policy.    Cookie Consent
© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies