Considerations on ESG Investment Implementation
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.
File(s): File format is application/pdf https://www.atlantafed.org/-/media/documents/research/publications/policy-hub/2022/06/21/07--considerations-on-esg-investment-implementation.pdf
Provider: Federal Reserve Bank of Atlanta
Part of Series: Policy Hub
Publication Date: 2022-06-21
Order Number: 2022-07