- CFA Exams
- 2024 Level II
- Topic 4. Corporate Issuers
- Learning Module 29. Introduction to Corporate Governance and Other ESG Considerations
- Subject 9. ESG Considerations for Investors
Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Subject 9. ESG Considerations for Investors PDF Download
ESG integration is the practice of considering environmental, social, and governance factors in the investment process. It can be implemented across all asset classes.
ESG Factors in Investment Analysis
Environmental factors include natural resource management, pollution prevention, water conservation, energy efficiency and reduced emissions, the existence of carbon assets, and adherence to environmental safety and regulatory standards.
Social factors generally pertain to human rights and welfare concerns in the workplace, product development, and, in some cases, community impact.
ESG Implementation Methods
Asset managers and asset owners can incorporate ESG issues into the investment process in a variety of ways.
- Negative screening is a type of investment strategy that excludes certain companies or sectors from investment consideration because of their underlying business activities or other environmental or social concerns.
- Positive screening and best-in-class strategies focus on investments with favorable ESG aspects.
- Thematic investing focuses on a single factor, such as energy efficiency or climate change.
- Impact investing strategies are targeted investments, typically made in private markets, aimed at solving social or environmental problems.
User Contributed Comments 0
You need to log in first to add your comment.
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
My Own Flashcard
No flashcard found. Add a private flashcard for the subject.