Week 5: Introducing "Inverted ESG Analysis"

Dear all,

Since early 2000, I have been working in the investment industry, analysing and assessing companies’ ESG and financial performance.

Back in the “old days” it was ethical and socially responsible investing. It then gradually developed into ESG investing, and nowadays even further into impact investing.

Over the years, I have developed, managed, designed and evaluated a significant amount of investment products (some very successful, some not) and used different approaches and techniques to position ESG as a core diver for financial performance as well as for general improvement for the companies I was selecting and investing in.

From bottom-up, thematic, best-in-class, exclusionary, integrated approaches, always looking to find the “golden spot” where ESG actions (rather than words) by a company created financial results. Investing is all about that. If it creates results it will be evaluated by the company, and it will be managed, implemented and reported on. Step by step it will shift businesses.

Decades have passed and today, despite the fact that ESG has become regulated in parts of the world, ESG remains a financial orphan of capitalism.

The concept I will share with all of you today is a humble attempt to see if and how we can make this orphan a full member of the family. Not by asking how it will become a member, but rather by asking what happens if it remains an orphan.

Allow me to introduce the “inverted ESG analysis” concept. It is another way of thinking. Maybe it can help us see ESG from another perspective, maybe it will shed another type of light on where ESG matters – as well as how much it matters. Or maybe it is too complex. However we see it, at least we can give it a try! 

You can find my introductory description of “inverted ESG analysis” here:

Best regards,
Sasja