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.
Emerging opportunities to help build a more sustainable world
Three Bank of America leaders discuss how innovations in policy, technology and risk assessment are helping the public and private sectors invest in solutions for climate change
As climate change intensifies, every segment of society must have an abiding interest in stemming its impact. The transition to a more sustainable economy must happen quickly and decisively, with the full commitment of the business and financial communities. “Sustainable finance means putting humanity and purpose together with capital,” says Karen Fang, Global Sustainable Finance Executive for Bank of America. “And every industry has the power and obligation to adapt and help drive positive change.”
Here, Fang, Alex Liftman, Global Environmental Executive for Bank of America, and Mary Obasi, Global Policy Advisory Executive for Bank of America, discuss what the transition to a low-carbon economy entails and how new developments such as the Inflation Reduction Act are driving progress on climate change.