When it comes to responsible investment, the lack of common definitions and metrics in environmental, social and governance (ESG) assessments can make it difficult to compare ESG practices between companies.
However, at Fairlight, we believe the way a company manages ESG issues is often a good indicator of their overall risk levels and general management quality. We consider the management of ESG to be a key determinant of a company's long-term success.
Companies with better ESG performance can increase shareholder value by better managing risks related to emerging ESG issues. ESG is becoming an increasingly important part of company value and how a company protects their brand and reputation.