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What are the actual goals of these Environmental, Social, and Governance investing? Who is investing and where exactly are they investing?

Walk along the path with us through the world of environmental, social and governance investing.

| December 15, 2020

What is ESG? ESG Investing is a term that is often used synonymously with sustainable investing, socially responsible investing, mission-related investing, or screening. At MSCI ESG Research we define it as the consideration of environmental, social and governance factors alongside financial factors in the investment decision-making process. Under the ESG investing umbrella, MSCI ESG Research has identified three common investor objectives or motivations when considering an ESG strategy: Integration, Values and Impact. In order to achieve these objectives, institutional investors may pursue different approaches such as ESG integration, exclusionary or negative screening, or thematic investing, to name a few. While this is not a comprehensive glossary of all ESG terms in the market, we provide an overview of several commonly used terms and their definitions below.

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