ESG investment is an investment completed under the guidance of concepts such as environmental friendliness and sustainable development, high-quality social responsibility performance, and outstanding corporate governance performance. Therefore, ESG investment contains a basic philosophy characteristic-investors are willing to pay a higher premium for ESG highly evaluated assets in order to implement their own concepts, and this willingness has a higher priority in investment than expected Measurement of return.
At first glance, this is to say that ESG investment is more about paying for "feelings", and may lose money or at least make less money. However, the expansion of ESG investment scale and the improvement of market performance in the previous stage have shown the opposite market reality. This is also where the ESG investment is worth investigating: bringing a positive cycle to good for good. Although these investors are willing to give up potential returns and pay higher premiums for ESG highly rated assets, as ESG concepts continue to heat up in the capital market, more and more companies with high ESG scores are added to their portfolios. More and more funds are flowing into these investments. In this way, although ESG-prone investors still pay a higher premium than expected returns and suffer losses from the perspective of long-term investment, short-term capital gains make up for these losses, and even obtain a higher excess income.
However, such a market investment model is completely based on a long-established capital market. Now, with US stocks as a signal, if the bear market in the international capital market arrives, will everything be different?
