The “S” In ESG: The Ugly Duckling Of Investing

Markus Müller, Enrico Börger & Michele Bovenzi

Research Organisation
Deutsche Bank

Report Date
Nov. 30, 2019

Document summary

“Social Sustainability” is a rarely heard term in the context of investment management. It is only in the past decade that social metrics have started being reported consistently by companies and analysed by investment managers. To this day, substantially more consistent frameworks exist for measuring environmental impact than overall social impact: only 14% of the purely “social” ratings compiled by the Global Reporting Initiative (GRI) at an audience of investors. In contrast, 97% of environmental ratings and 80% of governance ratings have investors as their primary audience.

In this timely and insightful piece of research, the authors examine the scope, opportunities and challenges for investment managers seeking to integrate social impacts and performance in the management of portfolios.