ESG ATTRIBUTION: MEASURING THE CONTRIBUTION OF ESG STRATEGIES

 

Estimated reading time: 4 min.

 

Understanding the impact of ESG strategies on portfolio performance is key for asset owners. Our ESG Attribution methodology provides a clear framework to measure how ESG investment approaches contribute to returns. It applies to any ESG strategy, including Best in Class, Screening (positive or negative), Impact Investing, and Best Effort approaches.

The methodology was developed by Philippe Grégoire and presented in the article "Measuring the Contributions of SRI/ESG Investment Strategies", published in the Journal of Performance Measurement, volume 23-4.

 


KEY INSIGHTS FROM THIS ARTICLE

 

    SUCCESSIVE INDICES APPROACH

    The model is based on an “on the fly” creation of successive ESG indices that represent each step of the ESG Strategy, thus, avoiding the need for specialized ESG indices.

    ISOLATING ESG CONTRIBUTION

    Performance method clearly identifies the part of performance attributable specifically to the ESG strategy.

    APPLICABLE TO ANY ESG STRATEGY

    Works across different approaches such as Best in Class, Screening, and Impact Investing.

    ACADEMIC FOUNDATION

    Developed by Philippe Grégoire and published in the peer-reviewed Journal of Performance Measurement.

 

FROM ESG STRATEGY TO MEASURABLE PERFORMANCE

The ESG attribution methodology allows asset owners to evaluate the effectiveness of their ESG strategies in a transparent, measurable way. By isolating the ESG contribution, it supports informed decision-making and reporting.

Explore the complete methodology and insights presented in the article:

 

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