Pictet Asset Management
Sustainable Credit: ESG is Key
It’s become the norm for equity investors to appraise a company on environmental, social and governance (ESG) criteria. Now, ESG analysis is also beginning to gain traction in the fixed income market. Ultimately, we believe that a clear under- standing of company ESG profiles gives investors a clear edge in surfacing the gems from a broad and deep pool of corporate credits.
Bondholders increasingly realise that the non-financial aspects of a business’s performance can have a lasting effect on its creditworthiness and investibility – a growing body of academic research that broadly shows a positive correlation between how well a company rates on ESG metrics and its cost of capital.
Read the complete white paper at the link beneath Related Files