ESG Integration
Integration of environmental, social and governance (“ESG”) factors is an integral component of the overall assessment of an investment opportunity to enhance the risk-adjusted returns of the funds.
ESG Integration is:
Integrating the ESG factors into fundamental investment analysis to the extent that they are material to improving risk-adjusted investment performance. Integration of environmental, social and governance (“ESG”) factors is an integral component of the overall assessment of an investment opportunity to enhance the risk-adjusted returns of the funds.
ESG Integration Is NOT:
Socially-responsible investment (SRI): |
a portfolio construction process that attempts to avoid investments in certain stocks or industries through negative screening to defined ethical guidelines. |
NOR
Impact investing: |
investing in projects or companies with the express goal of effecting mission-related social or environmental change. |
