Considerations on ESG Investment Implementation

Laura Starks

Policy Hub, 2022, vol. 2022, issue 7

Abstract: Although interest in investing according to environmental, social, and corporate governance (ESG) standards is widespread, investment managers face a number of basic considerations with their portfolio choices. In this article, I give a high-level overview of these considerations within the context of the investor motivation: ESG values, ESG value, or both. These considerations include whether investors should exclude certain firms or use a positive tilt; how they could integrate ESG into an investment approach; the role of third-party ESG ratings; how they should measure and report their portfolios' ESG qualities; and what evidence shows about whether integrating ESG principles or engaging firm management on ESG issues affects portfolio financial performance.

Keywords: corporate social responsibility; ESG investing; ESG values; ESG value; investment portfolio; sustainably responsible investing (search for similar items in EconPapers)
JEL-codes: G11 G19 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:fip:a00068:96684

DOI: 10.29338/ph2022-07

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