New partnership to study impact of ESG factors on portfolios

Fund manager NN Investment Partners (NN IP) and the Yale Initiative on Sustainable Finance (YISF) have formed a partnership to study how the integration of ESG factors in the investment process may improve the risk-return profile of a portfolio.

The results of the research are expected to support NN IP and others in the investment community to develop tools to achieve both financial and sustainable goals. YISF research director, Diane Strauss, commented: “At YISF, we explore the barriers to stronger integration of sustainability concerns in investment decisions. We are primarily concerned with ESG data and its relevance to the capital markets. Testing how ESG information influences financial returns is a critical question for the industry. We believe that rigorous academic research can provide independent and thoughtful insights necessary to move capital towards a more sustainable path.”

And NN IP head of specialised equity and responsible investing, Jeroen Bos, said: “We are very excited to support the Yale Initiative on Sustainable Finance. We strongly believe that the integration of ESG aspects in the investment process improves risk/return of investment portfolios.”