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Why We Think ESG is a Bedrock Investment Issue

By Gerry W. Beyer

Piggy-on-top-300x199The investment interest around environmental, social, and governance (ESG) criteria is growing among a wide variety of investors. This is not surprising, as in many ways they are the most foundational or bedrock investment issues. They matter in a real economic sense.

The Global Equity Team members at OppenheimerFunds seek to be long-term investors in above-average businesses that have significant competitive advantages, and that are beneficiaries of structural shifts in economic growth, technology, and demographics. In our experience, long-term value creation is not possible for companies entangled with ESG controversies. British Petroleum (BP) and its shareholders saw a $50 billion loss after the 2010 Deepwater Horizon spill.

The durability and trajectory of any given set of business economics can be enhanced or hindered by corporate performance on these criteria, and that is why we spend considerable time on ESG-related investment considerations. They have always been relevant, and they will continue to be so.

See Geogre Evans, Why We Think ESG is a Bedrock Investment Issue, Forbes, August 15, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

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