As the world grapples with multiple global crises in climate, healthcare and inequality, we expect profound policy shifts that will reshape capital markets. Potential new taxes or environmental regulations raise transition risks for many companies, but may also create opportunities for others.
What is ESG Integration and Engagement?
We integrate material ESG factors into most of AB’s actively managed strategies. Our investment teams use AB's proprietary tools to determine which ESG issues are material to performance, how they can be integrated into investment decisions, and to encourage the businesses they own to take them into account. Ultimately, we believe there is no substitute for bottom-up research by our industry experts that provide insights on material ESG issues that could help us enhance our clients' risk-adjusted returns.
Improves Risk
Assessment
Supports due diligence accurately that evaluates the material ESG issues impacting future cash flows which underline a company’s value.
Identifies
Better Opportunities
By applying a growth and stakeholder lens to identify products and companies aligned with public policy goals, investors can build diversified portfolios that create social benefits while generating strong returns.
Enhances
Decision Making
This is a process to think objectively by identifying how material issues can impact valuations and financial assets around the world.
Improves Risk
Assessment
Supports due diligence accurately that evaluates the material ESG issues impacting future cash flows which underline a company’s value.
Identifies
Better Opportunities
By applying a growth and stakeholder lens to identify products and companies aligned with public policy goals, investors can build diversified portfolios that create social benefits while generating strong returns.
Enhances
Decision Making
This is a process to think objectively by identifying how material issues can impact valuations and financial assets around the world.
Building Portfolios With Purpose:
Dedicated ESG Focus
AB’s Portfolios with Purpose aim to achieve financial objectives with a dedicated ESG focus. Though ESG considerations and engagement are a foundation, many investors want solutions that can enable them to invest for financial objectives—and do so with purpose. Because responsible investing isn’t “one size fits all”, we’ve developed a diverse range of portfolios that have an explicit ESG agenda in their investing processes.
Sustainable
Identify environmental or social challenges presented by the UN Sustainable Development Goals (SDGs) and target investment in issuers that provide products or services to tackle them.
Responsible+
Achieve additional responsibility/ ESG focus, such as ESG leaders or climate conscious.
Impact
Invest in issuers that might provide a positive and measurable impact on society or the environment.