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What drives the demand for ESG Integration Investment? - Entela Benz-Saliasi

Entela Benz-Saliasi of HKUST

Mar 19, 2019

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1. What drives the demand for ESG Integration Investment?

Video transcript

1. What drives the demand for ESG Integration Investment?

What drives ESG integration? Number one, demand from investor, be it millennials and women. As well as the mid-age and up, like 50 and 60 years old, as they become aware of environment social governance factors. The second factor will be the demand for higher returns. So, you either have a better model, or you have better data. So better data, more information about ESG, can drive return if they are integrated in a suitable way and managed in the right framework. What can go wrong with ESG? Many things can go wrong with ESG. If you use a noisy indicator, you get noisy results. If you use wrong models, you get the wrong result. So ESG application depends on what indicators you focus, whether they are material and financial for your sector, for your company. Number one. And number two, what is the theme, what is the value that you are looking for out of your ESG investing.