ABSTRACT

This chapter investigates the drivers behind RI-factor implementation within investors’ portfolios. The chapter first analyzes how investors who approach ESG through quantitative reasoning practically differ from investors who approach ESG through qualitative reasoning. This chapter further synthesizes the practical considerations of investors, both on the buy side and on the sell side, who approach ESG investing through specific aspects of environmental, social, and governance as opposed to a holistic view, and analyzes the practical considerations for such viewpoints. This chapter will be structured as an introduction to the investors’ views of ESG investing, and some practical considerations which impact investor decisions.