Goldman Sachs GS SUSTAIN: ESG of the Future When will investors reward ESG Improvers? Over time, we expect a rising focus on ESG Improvers as more investors look to drive and measure impact. This is catalyzed both by: (1) a shift in stage of the ESG life cycle towards the Measurement phase as addressed in our PMs Guide to the ESG Revolution report; and (2) a shift From Aspiration to Action among ESG investors on the back of multiple energy reliability events over the last 18 months. However, Fear of Misaligned Exposure (FOME) among ESG investors could be a headwind to the timing and pace of focus on ESG Improvers. We focus this report on seven high emitting sectors that are largely underweight in ESG funds. Because of the wide range of focus among ESG funds, the timing of a shift towards improvers is somewhat opaque. Nevertheless, the increased focus on achieving goals like Net Zero, Infrastructure and Clean Water will likely over time lead to a greater diversification of investments across the supply chain that includes companies driving impact through improvement.