INSIGHTS

Quantifying ESG in Portfolio Construction

Environmental, social, and governance (ESG) investing is a wide-ranging field that encompasses many different approaches. Investors are integrating ESG into the creation of their policies, investment beliefs, strategic asset allocations, manager selection decisions, and much more. ESG ratings and scores allow investors to understand and compare the ESG profile of companies and managers. ESG screens can serve as an effective tool for investors to identify exposures that may conflict with their institutional values.

In this third piece of our ESG series, we provide a few illustrative examples of ESG applications to demonstrate some of the ways investors might build understanding around integrating ESG into the investment process.