Social and Environmental Data as New Tools

Abstract

How much should money managers and stock analysts use data on the social and environmental records of publicly traded corporations in their investment practices and decision-making? Like financial data availability, social and environmental data availability creates a more transparent and efficient financial marketplace. Best practices and fiduciary responsibilities suggest we use these new data when clients' investment guidelines mandate specific social and environmental considerations; when shareholder resolutions relating to social and environmental issues appear on corporate proxy statements; and when clients' investment horizons are long term.