What happens if ESG standards change again? Could that affect index performance?
Posted on September 21st, 2016 by OWLinsights
Not if, but when. ESG standards continue to evolve. As the ESG industry has developed, standards organizations have focused more and more on ESG issues that are material to company performance; they and the ESG research companies continue to perfect their craft.
We believe these trends will continue. While there is always the chance that new standards will cause a temporary shift in relative ESG scores, responsible companies on the whole will continue to respond and rise to the top.
We believe an index based on evolving standards should likewise improve over time.