12Efficiently Allocating Capital to Transition to a Sustainable Economy

Madelyn Antoncic

DOI: 10.4324/9781003262039-14

Introduction

Environmental, social, and governance (ESG) investing has been one of the most important topics in asset management this past decade. Not only have ESG retail funds and ETFs grown significantly over the past several years, but mainstream investors are increasingly incorporating ESG into their investment decisions given the expectation that ESG enhances performance.

Given the broad range of what it means to invest sustainably, including what has come to be known as greenwashing, it is hard to pin down the precise size of the ESG market. Funds focused on ESG, as of the time of this writing, are reported to have ...

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