Understand the difference between ESG as a process versus ESG as a product
A group of investors convened under the auspices of the United Nations in 2004 to discuss how to further the aims of the UN Global Compact. The group’s subsequent report coined “ESG” as it recommended ways for asset management to include “environmental, social and corporate governance” factors in investment decisions.
The report, titled “Who Cares Wins,” set off two decades of growth in ESG, as most of the world’s notable asset managers incorporated ESG considerations into their investment analysis and many created investment strategies and funds with ESG analysis playing a central role.
The asset management industry’s response also led to confusion around ESG for investors, financial advisors, and…
