ABSTRACT
This chapter will be structured as an introduction to the history of ESG investing. It will outline political, social, and cultural factors which contributed to the growth of ESG investment strategies, and provide insight into the relationship between financial performance and ESG investment strategies. As such, this chapter will begin by highlighting the influence of Corporate Social Responsibility (CSR) in the development and adoption of ESG strategies amongst investors, from the 1900s to the present. This chapter will focus on the development of ESG investing first in Europe, then in the United States and North America, and finally in emerging markets, and will discuss the different investment practices that find their beginnings in ESG strategies, such as impact investing, micro-finance, and social venture. This chapter will specifically highlight the different types of institutions (boutique firms, large institutional investors, private investors, etc.) which have contributed to the global growth and development of ESG investing. In doing so, this chapter will provide insight into investment trends based on the investor demographic of those who have been historically attracted to ESG investing strategies. This chapter will discuss the expansion of ESG investing in a variety of investment sectors and asset classes. This chapter will seek to provide a helpful summary of the environment in which ESG investment trends developed, a historical foundation upon which the rest of this book depends, and a tool through which readers can use historical trends to predict the future of ESG investing.
