How Long to Read Deconstructing ESG Scores: How to Invest with Your Own Criteria?

How Long Does it Take to Read Deconstructing ESG Scores: How to Invest with Your Own Criteria??

It takes the average reader and 57 minutes to read Deconstructing ESG Scores: How to Invest with Your Own Criteria? by Torsten Ehlers

Assuming a reading speed of 250 words per minute. Learn more

Description

Environmental, Social, and Governance (ESG) scores are a key tool for asset managers in designing and implementing ESG investment strategies. They, however, amalgamate a broad range of fundamentally different factors, creating ambiguity for investors as to the underlying drivers of higher or lower ESG scores. We explore the feasibility and performance of more targeted investment strategies based on specific ESG categories, by deconstructing ESG scores into their granular components. First, we investigate the characteristics of the various categories underlying ESG scores. Not all types of ESG categories lend themselves to more focused strategies, which is related to both limits to ESG data disclosure and the fundamental challenge of translating qualitative characteristics into quantitative measures. Second, we consider an investment scheme based on the exclusion of firms with the lowest scores in a given category of interest. In most cases, this strategy allows investors to substantially improve the ESG category score, with a marginal impact on financial performance relative to a broad stock market benchmark. The exclusion results in regional and sectoral biases relative to the benchmark, which may be undesirable for some investors.We then implement a “best-in-class” strategy by excluding firms with the lowest category scores and reinvesting the proceeds in firms with the highest scores, maintaining the same regional and sectoral composition. This approach reduces the tracking error of the portfolio and slightly improves its risk-adjusted performance, while still yielding a large gain in the targeted ESG category score.

How long is Deconstructing ESG Scores: How to Invest with Your Own Criteria??

Deconstructing ESG Scores: How to Invest with Your Own Criteria? by Torsten Ehlers is 56 pages long, and a total of 14,336 words.

This makes it 19% the length of the average book. It also has 18% more words than the average book.

How Long Does it Take to Read Deconstructing ESG Scores: How to Invest with Your Own Criteria? Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 18 minutes to read Deconstructing ESG Scores: How to Invest with Your Own Criteria? aloud.

What Reading Level is Deconstructing ESG Scores: How to Invest with Your Own Criteria??

Deconstructing ESG Scores: How to Invest with Your Own Criteria? is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Deconstructing ESG Scores: How to Invest with Your Own Criteria??

Deconstructing ESG Scores: How to Invest with Your Own Criteria? by Torsten Ehlers is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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