https://seekingalpha.com/article/4195963-esg-survey-spotlight-integration-fixed-income-managers
In the past, the words ESG and Responsible Investing were primarily understood in terms of clients’ ethical value judgements—and were often deemed as potential detriments to performance. However, an increasing number of the managers we surveyed have adapted their understanding of ESG and now see ESG factor assessment as an integral part of their risk management exercises. In our opinion, this makes sense, because capital appreciation opportunities are typically much more limited for bond investments than for stock investments—making downside management a crucial component of bond investing.
Author: Christopher K. Merker, Ph.D., CFA
Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught the course “Sustainable Finance” since 2009. Executive director of Fund Governance Analytics (FGA), an ESG research partnership with Marquette University, he is a member of the CFA Institute ESG Working Group, an international committee currently exploring ESG standards, publishes the blog, Sustainable Finance, which covers current topics around governance and sustainability in investing, and is co-author of the book, The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.