Document summary
This report outlines ESG Consensus findings across GICS1 and GICS2 sectors and by region (AMRS, EMEA, APAC and EMs) – including the top and bottom 25 held companies and movers. A growing body of investors are integrating ESG (environmental, social, governance) issues into their investment processes, both from risk and opportunity perspectives. BAML ESG Consensus model provides a unique measure of the weight of ESG in stock and sector market values based on the holdings of a panel of 500 global ESG and long-term thematic investment funds with US$108bn in AUM. Based on their analysis of ESG and long-term thematic allocation in the MSCI AC World, the most commonly held GICS3 sectors are Water Utilities (14.4x over allocated vs. index), Independent Power Producers (3.8x), Electrical Equipment (2.3x), Machinery (2.2x), and Multi Utilities (1.9x).