When employing an ESG integration strategy, asset managers are most likely to corroborate ESG data with multiple sources.
Data Verification: To ensure the accuracy and reliability of ESG data, asset managers typically verify information from multiple sources, including third-party data providers, company disclosures, and independent research.
Comprehensive Analysis: Corroborating data from various sources helps asset managers build a comprehensive and nuanced understanding of a company's ESG performance, reducing the risk of relying on potentially biased or incomplete information.
Investment Decisions: This thorough approach supports more informed investment decisions, as managers can cross-check data points and identify any discrepancies or red flags.
CFA ESG Investing References:
The CFA Institute’s materials on ESG integration emphasize the importance of using multiple data sources to validate ESG information, ensuring robust and credible analysis in the investment process.
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