Responsible investing is rapidly moving into the mainstream of professional funds management. It is often referred to as ethical investing, sustainable investing or Environmental, Social and Governance (ESG) investing. While the sector encompasses a wide range of strategies, there are some core investment beliefs all responsible investors share. The Principles for Responsible Investment (PRI) begin by stating professional investors “have a duty to act in the best long-term interests of their beneficiaries”.
Signatories to the PRI also agree that “environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios”. PRI signatories promise to integrate issues like these into their investment approach and decision making. This process, known as ESG integration, is the predominant approach taken by responsible investors.
Read full article here.