ABSTRACT

This chapter will cover the current role of ESG investments within investment portfolios. It will first discuss the current role of ESG investing within developed markets, then within emerging markets. It will then outline current methods that investors use to incorporate ESG investing strategies into the major asset classes, such as equities, fixed income, commodities, real estate, venture capital and early stage private equity, and structured products, synthetics, and derivatives. This outline will build upon the concept of impact investing in the development and adoption of ESG investment strategies, particularly by private investors. Building upon the discussion of ESG investing in the different markets and asset classes, this chapter will then discuss the role of ESG investing within investment sectors, such as: information technology, financials, consumer staples, consumer discretionary, materials, and energy. This chapter is intended to build upon the background of ESG investing and to give the reader a thorough understanding of the current role of ESG investing within markets, asset classes, and sectors.