Rockefeller Asset Management Research: ESG Improvers – Alpha Enhancing Factor

Rockefeller Asset Management (RAM) believes that investors will increasingly differentiate between ESG Leaders and ESG Improvers – those firms showing the greatest improvement in their ESG footprint – and that the latter offers a greater potential for generating uncorrelated alpha over the long-term. In our paper “ESG Improvers: An Alpha Enhancing Factor”, we discuss our belief by quantifying the trajectory of a firm’s ESG footprint and demonstrating the risk and return prospects. We believe that Rockefeller’s ESG Improvers research has wide-reaching applications across long-only fundamental, long-short fundamental, and quantitative styles of investing.

RAM: ESG Improvers – An Alpha Enhancing Factor