The consideration of Environmental Social and Governance (ESG) factors is of growing importance in asset management. Successful approaches are increasingly being used to great advantage both to enhance returns and, perhaps more importantly, to understand and manage risk. Furthermore, the consideration and integration of ESG factors is of interest to many investors.
The consideration of ESG factors is increasingly being integrated into investment processes. We believe the value of successful ESG integration will grow in importance and lead to better investment decisions. We hope this will help investors to better understand how their investments are managed.
We will analyse ESG integration at two levels for each of the funds which we rate:
1. At the company level, we seek to understand if and how an asset manager integrates the consideration of ESG factors in its investment processes
2. We seek to understand if and how ESG factors are considered in the management of individual funds
Find out more information through our detailed Q&A
View the full ESG integration methodology here.