Incorporating inclusive growth as a stock selection factor
Is inclusive growth underappreciated as a factor to be considered when investing sustainably? Amid geopolitical tensions, rising populism and growing inequalities, assessing a business’s inclusivity matters when selecting investments, Shazaan Gafoor, Investment Specialist for the Global Equity team, tells Andrew Craig, Co-Head of the Investment Insights Centre.
The Global Equity team’s approach includes an analysis of social issues such as equitable hiring, employee education and social mobility. The resulting ‘inclusive growth score’ is part of their broader ESG (environmental, social, and governance) assessment. “We focus on company practises… it's a differentiated approach versus just looking at the company's activities,” Shazaan says.
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