Strengthening ESG risk assessment through dynamic credit analysis

Rong Ren Goh, Assistant Director Eastspring Investments |

Investors increasingly recognise the benefits of ESG risk analysis in protecting the long-term value of their investments. As investment managers look to assess ESG risks, inadequate ESG disclosures, inconsistent definitions, diverse and often subjective interpretations imply that there are no short cuts to this process. We cannot merely rely on external ESG evaluation; active fixed income managers with significant credit research capabilities would be able to better understand the ESG risks of issuers and add value to investors.