The Materiality of the “S” in “ESG”

The environmental, social, and governance (ESG) research among institutional investors has historically focused mostly on the “E” and the “G,” leaving social issues as somewhat of a forgotten middle child. But the COVID-19 pandemic and racially-driven police violence have shifted public opinion, and it matters. At this inflection point, there is a recognition that investors can and will play a role, and that companies and bond issuers will be held increasingly accountable for the impact they have on their colleagues, communities, and customers.