Unlike passive index investing, an active approach allows for a more in-depth assessment of ESG characteristics
While index trackers can exclude certain categories and may seek to influence companies through proxy voting, our active investment teams embed ESG considerations throughout the investment process and engage with companies to create value, potentially enhancing risk-adjusted returns over the long term.
When it comes to ESG ETFs, combining the benefits of ETFs with active management can be particularly advantageous. Passive ESG ETFs typically apply exclusions or, if a sharper ESG focus is required, they track ESG indices such as socially responsible investment (SRI) or Paris-aligned benchmarks. As a result, investors are fully reliant on the ESG analysis of these index providers.
Expected Change in investment vehicles used to access ESG
09ab221212093730