ESG Invsetment Framewroks

ESG as an investment philosophy that takes a company’s environmental, social, and governance factors into consideration. In addition to being assessed by financial metrics, companies are also evaluated on non-financial metrics.

The theory of the case is that doing well on ESG metrics improves a company’s financial metrics — and the facts appear to support that theory.

But ESG frameworks and strategies varies greatly, and ESG approaches are highly subjective and diverse. We put together a few references of different strategies and frame works in the following links:

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1. The Investor Revolution by Robert Eccles and Svetlana Klimenko. Harvard Business Review article covering the different sustainable investing strategies. 

2. Responsible Investing Around the World:  To learn more about differences in ESG investing globally, Aberdeen Standard Investment’s guide is a compelling read.

3. Environmental, Social, and Governance Factors at Listed Companies: A Manual for Investors: The CFA Institute comprehensively covers the basics of reasons for considering ESG, as well as risks and opportunities.

4. Sustainable Development Goals: A Business Perspective: Deloitte covers each of the 17 SDGs with a discussion on what businesses can do.

5. SDG Compass: the UN Global Compact report’s step by step guide from understanding the SDGs to reporting and communicating on sustainable development performance.

6. GRESB is the most successful and influential ESG reporting standard for real estate industry.