ESG
Environmental, Social, and Governance criteria are the three core sets of standards for a company’s operations that an investor uses to examine potential investments. ESG criteria can help an investor to avoid certain companies that might put forth a greats financial risk due to its environmental, social, or governance practices.
In order to determine a potential investment in a fund or company based on ESG criteria, investors may look at a wide range of factors. Types of environmental criteria may include issues related to sustainability and climate change and how a company navigates or manages those risks. Social concerns include diversity and inclusion, human rights, animal welfare, and more. Governance criteria could include the structure of management, specific employee relations and compensation as well as executive compensation. There are a wide variety of criteria in evaluation ESG practices, and these only touch on the surface, but more and more managers are incorporating them into their due diligence processes as they see the benefits of making socially responsible investments.
For more information on ESG strategies, please contact INDICES@HFR.COM
Learn more about the HFRX ESG Indices
Examples of HFR Indices that employ ESG strategies are listed below:
ESG
| Index Name | ROR | Index Value | YTD | LAST 12M | LAST 36M | LAST 60M | |
|---|---|---|---|---|---|---|---|
| HFRX Alternative Energy Index › | 1.51% | 2956.14 | 0.76% | 3.06% | 17.84% | 13.31% | |
| HFRX Climate Change Index › | -0.57% | 1822.91 | -2.16% | 2.55% | 15.16% | 9.31% | |
| HFRX Diversity Index › | -0.03% | 3753.41 | 0.27% | -0.03% | 5.08% | 4.58% | |
| HFRX Energy Transition Index › | -0.63% | 1834.26 | -3.32% | 3.38% | 18.24% | 9.44% | |
| HFR Women Access Index › | -0.84% | 1189.09 | 0.28% | -1.64% | 5.81% | 3.52% |