NAB’s ESG Momentum: A Positive

Blog December 17, 2017

Full article available on LiveWireMarkets.com

by Hunter Page, Regional Director, TruValue Labs

Summary

Many quants and hedge fund managers are sceptical of the value of ESG (Environmental, Social and Corporate Governance) data. It certainly makes reasonable sense that traditional ESG data tends to be the domain of long-term investors.

So why are quants and hedge fund managers buying ESG data?

The Answer? ESG momentum

ESG momentum has shown clear alpha signals, and investors are noting an increasingly positive feedback loop:

The more various stakeholders (investors, media and the general public) understand sustainability issues, the more companies are likely to report, the more the media will focus on the issues and the more material the issues become for a company.

Managers, especially those processing terabytes of alternative data, are well positioned to benefit from this trend.

As an example, let’s point the TruValue Lab’s Artificial Intelligence engine towards National Australia Bank (NAB) to see how ESG momentum plays a role in its ESG performance.