ABSTRACT
This chapter will speak to the impact of several well-known investment strategies on development trends in ESG investing. Investment strategies discussed will be shareholder vs. stakeholder theory, theories about material vs. immaterial information, the universal owners view, and the resource-based view (RBV) vs. the intrinsic value view. This chapter will be structured as a literature review covering a variety of arguments regarding important investment theories that have bearing on investors who are considering incorporating ESG investing into portfolio construction. It will provide insight into the reasons why investors choose to incorporate or exclude ESG investing strategies into portfolio management. This chapter will build upon the current position of ESG investing within developed and developing markets, asset classes (focusing mainly on fixed income and equities), and sectors (discussed in Chapter 4).
