For his part, Silveira sees a macro benefit accruing from integrating ESG factors into the analytical process.
“Why we’re excited about ESG is that, as the market comes to integrate and understand the mechanics of these types of risk, it will lead to increased valuations and prices for the companies with the lowest ESG risk,” he said.
“The world could ultimately be rewarding companies for better behavior and better stewardship of these important risks,” Silveira said. “And ultimately, higher valuations will result in a lower cost of capital.”