Using ESG to Enhance Fixed-Income Returns: The Case of Inherent Group

At Inherent Group we aim to earn above-market risk-adjusted returns in businesses that are environmentally and socially as well as financially sustainable. We apply environmental, social, and governance (ESG) analysis throughout every stage of our investment process across the entire corporate capital structure. In our experience, this approach has produced differentiated insights into investment opportunities across a variety of industries, geographies, and security types. Investment managers have traditionally overlooked ESG considerations in credit markets, but we have found that such insights—into the effects of externalities such as climate change, environmental impacts of production, and transparency of sales practices, for example—improve our assessments of credit risk and reward. Read more here: JACF_Fall 2020 Issue.

This article was published originally in the Fall 2020 issue of The Journal of Applied Corporate Finance Vol 32, No. 4.