Unlocking the investment potential of 'S' in ESG: the key? More research and data on social issues – AllianceBernstein

Social issues are perhaps the most difficult to research and least understood by investors. ESG-focused investors need a way to step up to the challenge.

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... Social issues are perhaps the most difficult to research and least understood by investors with an environmental, social and governance (ESG) focus. But the risks and opportunities they represent are growing, and investors need a way to step up to the challenge.

From modern slavery to female representation in the workforce, companies are plagued by a growing list of social concerns. These issues account for a higher proportion of corporate controversies than environmental and governance issues.

Yet ESG-focused investors, who have become increasingly systematic and sophisticated in incorporating environmental and governance factors into investment decisions, don’t have similarly robust processes for addressing social factors.

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