From SRI to ESG: Changing the world of responsible investing

Lynn Russo Whylly's picture
Thursday, September 12, 2013

The paper reviews the principal categories and history of responsible investing, and discusses why socially-responsible investing (SRI), environmental, social and governance investing (ESG), mission-related investing and impact investing -- have grown in importance for institutional investors; the fundamental arguments for and against ESG for long-term fiduciaries; and the impact ESG has on their institutions.  It shows that ESG implementation does not need to be an all-or-nothing decision. Rather, a sliding scale of engagement is available for institutions that decide to explore ESG issues. According to a recent report, the responsible investing market in the U.S. was estimated at year end 2012 to have $3.74 trillion in assets under management, representing 11.2 percent of the $33.3 trillion total assets under management in the U.S.

 

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