Chapter 7

Approaches to ESG Investing

IN THIS CHAPTER

Bullet Surveying socially responsible investing

Bullet Investigating impact investing

Bullet Checking out faith-based investing

In Part 1 of this book, you get a good understanding of why investing in ESG is an important consideration for your portfolio. This part of the book focuses on the approaches to ESG investing that different investors may employ, and the types of instruments that they use to implement their strategy.

This chapter, in particular, emphasizes that many terms have been used interchangeably to describe the incorporation of ethical, environmental, and social factors into investment fund management, such as ethical investment, green investment, and socially responsible investment. The definitions of these various terms all overlap, and many have particular significance for different industry participants. With the growth in investing in recent years, these industry terms have proliferated. However, distinct differences exist that influence how client portfolios should be structured as well as which investments meet social or environmental impact goals.

Understanding Socially Responsible Investing

As outlined in Chapter 1, the integration ...

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