Aegon AM: Why ESG matters in a crisis


Challenging markets can provide an opportunity for ESG to demonstrate its value.

After a historic bull market, the recent market fallout provided an opportunity to test the resilience of ESG and responsible investment solutions. Although the time period has been short and few areas were left unscathed, certain ESG-focused or responsible investment strategies have weathered the storm and, in many cases, outperformed traditional products.

 

Key takeaways:

  • During market turmoil, ESG criteria can help identify risk factors and evaluate corporate resilience, stranded asset risk and management quality.
  • Investing in companies with stronger ESG practices or alignment with sustainable themes can lead to more resilient portfolios during a downturn.
  • ESG and responsible investing momentum is likely to continue as companies strive to serve various stakeholders and investors seek to effect measurable positive change.

 

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