Written by Hakyung Kim
ESG investing, which stresses environmental, social and corporate governance yardsticks when building a portfolio, has long struggled with a lack of transparency and differing metrics across companies — making it difficult for investors to gauge the impact of their investments.
Now, San Francisco-based asset manager Newday Impact Investing believes that using what it calls an Ecological Benefits Framework (EBF), or “a shared market architecture,” could provide a new way forward in social investing. Newday, which focuses on environmentally- and socially-responsible portfolios, argues that EBF gives a more comprehensive overview of the true effect a business than does traditional ESG investing.