PT  - JOURNAL ARTICLE
AU  - Ann-Kathrin Behringer
AU  - Robert Bush
AU  - Jascha Dahlhaus
AU  - Irina Sidorovitch
TI  - ESG and Quality Are Not the Same
AID  - 10.3905/jesg.2023.1.067
DP  - 2023 Feb 28
TA  - The Journal of Impact and ESG Investing
PG  - 7--27
VI  - 3
IP  - 3
4099  - https://pm-research.com/content/3/3/7.short
4100  - https://pm-research.com/content/3/3/7.full
AB  - There is a perception from some investors that ESG and quality approaches are either very similar or that claims of ESG outperformance might in fact be capturing an unintended exposure to the well-documented quality factor instead. The authors enter the debate on this topic by using a 3 × 3 framework to further analyze ESG and quality in the main equity regions, arguing the following: (1) that ESG can be deconstructed into three metrics—E (environmental), S (social), and G (governance); (2) that quality can broadly be thought of as representing three features of corporate performance—profitability, growth, and stability; and (3) that these relationships can usefully be examined across the three main equity regions—North America, Europe, and the emerging markets. The authors report nuances from this more granular approach.