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Ownership of ESG characteristics

Author

Listed:
  • Mark E. Bateman

    (Aperio Group, LLC, a wholly-owned, indirect subsidiary of BlackRock, Inc.
    Old Dominion University)

  • Lisa R. Goldberg

    (Aperio Group, LLC, a wholly-owned, indirect subsidiary of BlackRock, Inc.
    University of California, Berkeley)

Abstract

A portfolio can be viewed as the collection of the businesses, policies and practices of constituent companies. We measure investors’ Ownership of this collection. Ownership metrics aggregate an assortment of company specific Environmental, Social and Governance (ESG) characteristics to the portfolio level, and they can inform investment and engagement decisions. Relative to a benchmark, investor Ownership is active and satisfies a zero-sum property, which underscores the distinction between Ownership and impact. Ownership of ESG characteristics may be interpreted as ascribing ethical responsibility, but that conclusion and any decisions that result from it belong to the investor.

Suggested Citation

  • Mark E. Bateman & Lisa R. Goldberg, 2023. "Ownership of ESG characteristics," Journal of Asset Management, Palgrave Macmillan, vol. 24(7), pages 534-540, December.
    • Handle: RePEc:pal:assmgt:v:24:y:2023:i:7:d:10.1057_s41260-023-00335-y
    DOI: 10.1057/s41260-023-00335-y
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    References listed on IDEAS

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