Value investing and ESG: Challenge presents opportunity

A valuable framework

It is understandable why one may not relate the style of value investing to that of strong positive ESG credentials.

Many of the industries that feature heavily in the value investment universe can screen negatively on ESG factors, especially in areas like energy, materials, industrials and utilities, which historically have had a higher carbon footprint. But we will not achieve net-zero goals without their improvements. Value investors are now far more influential in the climate transition than ever. There is significant change ahead, and with that comes opportunity. Decades of underinvestment calls for a new capex cycle  Since the global financial crisis, corporates and governments have hugely u...