How does the use of sustainability information differ between public equity and fixed-income investments?

The utilization of sustainability information in public equity and fixed-income investments highlights distinct focuses in investment strategies. Public equity investors often leverage sustainability data to inform their pricing of securities. This is because investors in equities are more concerned with how a company's sustainability practices can affect its market performance and valuation. For instance, if a company has strong environmental policies or an excellent record in social responsibility, this may positively impact its stock price, thereby influencing investment decisions.

On the other hand, fixed-income investors tend to focus on the repayment ability of borrowers, such as companies or governments. While sustainability data is also relevant for fixed-income investments, the information is often used to assess how environmental and social risks might affect an entity's stability and creditworthiness. Therefore, fixed-income investors examine how sustainability practices impact long-term viability and the likelihood of repayment rather than direct pricing metrics like in public equity.

The correct choice illustrates this distinction clearly, emphasizing the divergent roles that sustainability data play within the two types of investments.