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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?
Holden Caulfield | 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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