1 Group of Thirty, "Mainstreaming the Transition to a Net-Zero Economy," October 2020.
2 McKinsey, "How the E in ESG creates business value," June 2020.
4 McKinsey, "How the E in ESG creates business value," June 2020.
5 Lazard, "Levelized Cost of Energy Analysis," November 2021.
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Sustainable and Impact Investing and/or Environmental, Social and Governance (ESG) managers may take into consideration factors beyond traditional financial information to select securities, which could result in relative investment performance deviating from other strategies or broad market benchmarks, depending on whether such sectors or investments are in or out of favor in the market. Further, ESG strategies may rely on certain values based criteria to eliminate exposures found in similar strategies or broad market benchmarks, which could also result in relative investment performance deviating. Impact investing and/or ESG investing has certain risks based on the fact that ESG criteria excludes securities of certain issuers for nonfinancial reasons and therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
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