ESG quick guide: Sustainable improvers

Yuan Jiang, sustainable investment specialist, says:

• Sustainable improvers are companies that have average or below average ESG profile, but are taking steps in addressing ESG risks and opportunities to improve their ESG performance.
• The improvement potential of sustainable improvers is under-valued by the market.
• We believe the more attractive opportunity is to generate alpha from investing in future ESG momentum.
• Improver strategies enable investors to align their investments with their preferences. By investing an improver strategy, investors can signal the importance of good ESG practices and motivate investee companies to improve.
• We adopt an actively-managed, ‘quantamental’ approach to identify sustainable improvers