Brightest

Investment Analysts Starting to Downgrade Stocks Over Environmental + Social Governance (ESG) Risks

founder @ Brightest

Published on Jul 17, 2020

We've noticed a trend (recently called out on Twitter by hedge fund Chief Investment Officer and former Fidelity portfolio manager Gavin Baker) that investment analysts are actively evaluating (and even downgrading) stocks of publicly traded companies based on their ESG performance.

As we've long thought at Brightest, climate, sustainability, and social impact measurement is no longer a fuzzy, vague discipline CEO's and CFO's can overlook or "greenwash." Investors (not to mention employees and customers) are starting to look at the numbers and want companies to quantify their ESG operations and performance.

Companies with strong environmental performance (and reporting) will be able to attract more capital, customers, and ultimately create more value in the future than companies who overlook their social responsibilities in pursuit of short-term profit.

We think this is a major data, software, and technology opportunity, and delivering more efficient, real-time, and actionable solutions in this space is one of our top product roadmap priorities over the next year - and we're excited to have your support making this happen and building a better, more fair, and more just economic future.