Over the last several years, ESG data has become increasingly rich and sophisticated. However, the “S” has presented more challenges in terms of data as “social principles have gotten far less representation in portfolios than environmental and governance issues.” This is because the “S” covers such a wide range of topics and because broader sustainability reporting, although progressing at speed, has not yet resulted in commonly adopted standards and best practices.
However, “[t]his dynamic is changing, as asset managers, advisors, and investors demand information and flex their shareholder muscle, and as more mutual funds find effective ways to sharpen a social focus.”
Read more in Barron’s to learn how Jeff Gitterman and Adam Bernstein see the change in the market when it comes to the “S” in ESG, and which mutual fund families and products are leading the way.