NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, December 11, 2019

By Mary Leung

In recent years, the integration of ESG factors into the investment management process has drawn increasing attention from both regulators and investors. This attention is the result of growing recognition of the impact that material ESG factors have on the long-term prospects and sustainability of a business.

An increasing number of investors accept that an evaluation of an investment opportunity (be it equity or fixed income) is not complete without proper appreciation and analysis of these factors.

In a world where commercial operations are increasingly threatened by extreme weather events, natural disasters, reputation, and stakeholder relationships, the consideration of material ESG factors is not only logical, but essential for the investment management industry.