Is there an investment opportunity for 'bad' ESG assets?

The past 18 months have seen an acceleration of the Environment Social and Governance (ESG) agenda, and this is a positive development. However, this has created a dichotomy: investors clamour for "good" ESG assets and are keen to shun "poor" ones, says Andrew Probert of Duff & Phelps. A low rating, or more accurately, "score" from the point of view of ESG, will likely affect an asset's market price. But as investors are aware, they can often achieve a better return from an asset that generates higher-than-expected returns over time or by buying it at a lower price. So, do assets that ma...