Almost a year ago, I wrote about how the best fund managers use news about ESG events and risks to improve their performance. If ESG information really provides information about company risks it should not only help fund managers, but also sell-side analysts. For example, if a company had an ESG-related event like an oil spill or the labour standard violations of Boohoo, then analysts who are tuned in to these risks should adjust their forecasts for future earnings and share price returns accordingly and hopefully have better forecasts than analysts who ignore such nonfinancial risks.
On the sell side, the good ones use ESG news, too
On the sell side, the good ones use ESG news…
On the sell side, the good ones use ESG news, too
Almost a year ago, I wrote about how the best fund managers use news about ESG events and risks to improve their performance. If ESG information really provides information about company risks it should not only help fund managers, but also sell-side analysts. For example, if a company had an ESG-related event like an oil spill or the labour standard violations of Boohoo, then analysts who are tuned in to these risks should adjust their forecasts for future earnings and share price returns accordingly and hopefully have better forecasts than analysts who ignore such nonfinancial risks.