J.P. Morgan Asset Management - The evolution of the ESG investment landscape
Strategists at J.P. Morgan Asset Management shared their views on why investors are paying more attention to ESG factors and how ESG factors can be incorporated into investment decision making.
Environmental, social and governance factors are increasingly used alongside traditional financial metrics to gain a better understanding of the risks linked to the sustainability of any investment. There are many ways in which these factors can be incorporated into an investment process, depending on how investors want to align their financial objectives with their values.
- What is ESG?
- Why are investors paying more attention to ESG factors?
- How can ESG factors be incorporated into investment decision making?
- What is the process for rating an asset based on ESG factors?
Environmental, social and governance factors are becoming a higher priority for governments, regulators and savers alike. Investors have a range of strategies they can deploy, ranging from ESG integration, whereby ESG factors are considered alongside traditional metrics in the investment process, to impact investing, in which a specific sustainable outcome is at the heart of the investment process. At a minimum, understanding how ESG-related preferences and policies are changing is necessary to mitigate investment risk. However, savers are, increasingly, seeking more than financial returns—they also want to be a force for change.
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