15 June 2021
The article below was first published in Investor Daily on 15 June 2021.
Given ESG’s high, and rapidly growing profile, our investment partners at Flinders thought it worthwhile putting their thoughts down as to what it actually means (and what it doesn’t), how it can be applied to small cap stocks and what benefits that application can mean to an investment portfolio.
Analysing and understanding ESG factors in smaller companies is very different to top-100 companies. For a start, there is less public information available and fewer groups doing external research. Broker analysis of ESG issues largely relate to larger companies and mid-tier brokers tend to avoid the issues altogether. Bottom line; in smaller companies you do it yourself.