ESG Investing: A Factor Perspective

7 May 2021

LFIS analyses the risk/return potential of traditional ESG data through the lens of factor investing.

This second in LFIS’ series of three white papers dedicated to sustainable investing asks the question “Is ESG a factor?” Our analysis shows that, based on standard data, there is limited evidence of either positive exposure to already discovered factors nor exposure to a new “ESG-labeled” factor.