Interest in sustainable investing is growing. And with that, the industry has debated how to properly rate and score ESG initiatives and their validity as a sole source of decision making for investments. Rating agencies have come under scrutiny for scores that often overlook key considerations and rarely tell a uniform story. In industries with a larger environmental impact, such as automotive, energy, and textiles, deeper considerations are necessary if investors are looking to have real impact on their investments.
Making a commitment to proper interpretation of ESG ratings is key to sustainable investing at Reynders, McVeigh. ESG ratings are a starting point, not a determination. In fact, by considering ESG scores in the context of broader due diligence, investors can better uncover investments that advance ESG issues while remaining positioned for growth. For a more in-depth overview, check out our latest white paper: The Importance of Being Diligent: ESG Scores Don’t Stand In Isolation RM Benchmarking Infographic Final (20220824)