Introduction to ESG Investing

What is the main focus of ESG investing?

Exclusively targeting niche ethical investors

Ignoring societal and client pressures

Maximizing short-term profits

Incorporating environmental, social, and governance factors into investment decisions (correct)

Which group has played a role in encouraging the integration of ESG analysis into investment practices?

Investment managers against ESG factor analysis

Asset owners avoiding ESG criteria

United Nations Principles for Responsible Investment (PRI) (correct)

Socially irresponsible investors

What has led integration of ESG criteria to become more mainstream?

Exclusion of asset owners from the process

Avoiding responsible investment proponents

Growing evidence of the direct financial benefits of ESG analysis (correct)

Decreasing societal and client pressure

What is one of the implications of integrating ESG factors into investment analysis and decision-making processes?

Enhancing returns and better managing risks Signup and view all the answers

What does the chapter provide an overview of?

The concept of ESG and different types of responsible investment Signup and view all the answers

Who is developing ways to incorporate ESG criteria into investment analysis and decision-making processes?

Asset owners and investment managers Signup and view all the answers

In ESG investing, what factors are explicitly incorporated into investment decisions?

Environmental, social, and government factors Signup and view all the answers

What does ESG investing aim to correctly identify, evaluate, and price?

Social, environmental, and economic risks and opportunities Signup and view all the answers

What does the category of social factors in ESG investing include?

Management of human and non-human animals Signup and view all the answers

What is currently lacking in assigning ESG issues?

Universal standard Signup and view all the answers

Who are stakeholders in the context of ESG investing?

Members of groups without whose support an organization would cease to exist Signup and view all the answers

What is an example of a social factor in ESG investing?

Employee relations Signup and view all the answers

What stakeholder group is recognized by ESG investing as essential for long-term sustainable returns?

'Members of groups without whose support an organization would cease to exist' only Signup and view all the answers

What is the aim of ESG investing in relation to long-term sustainable returns?

'Generation of long-term sustainable returns' Signup and view all the answers

'Your guide to ESG reporting' is associated with which organization?

'FTSE Russell' Signup and view all the answers

'Climate change' is an example of which type of factor in ESG investing?

'Environmental factor' Signup and view all the answers