Related: The Battle of Acronyms: SRI Vs ESG
However, FlexShares believes that the best way to access the ESG space is to integrate ESG-related KPIs into an investment strategy.
“KPI integration improves bottoms-up security selection while removing data-provider bias,” according to FlexShares. “The methodology builds an ESG index by essentially coding at the ‘root’ level versus applying an overlay or top-down ESG strategy; it parallels the best behaviors of portfolio managers when it comes to evaluating, sorting and selecting companies for investment.”
Financial advisors who are interested in learning more about ESG investments may register for the Thursday, September 21 webcast here.