The idea of analysing companies using more than just financial indicators has moved into the mainstream, writes Nerina Visser IN RECENT years, the idea of analysing companies using more than just financial indicators has moved into the mainstream. Previously, such approaches were considered luxuries for ethical investors prepared to accept underperformance from their investments in exchange for a "feel-good" factor. But more recent research has shown growing awareness that environmental, social and governance (ESG) factors filter into the bottom line.Responsible investing has emerged from the embryo of "socially responsible investing", which in turn originated from religious groups using a negative screening approach to avoid investing in companies whose core operations were incompatible with their beliefs. By contrast, ESG factors are primarily used in positive screening methods that identify investment opportunities that promote the principles of responsible investing.In a recent ...

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