The value of global assets applying environmental, social and governance (ESG) data to drive investment decisions is well north of $30-trillion. A large part of what is driving this is demographic changes and social attitudinal shifts. The generation Y & Z marketplace is demanding that firms take a more ethical approach to how they source raw materials and their stances on social issues.

There has been a tendency to lump ESG, socially responsible investing (SRI) and impact investing in one basket. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyond technical valuations. The main objective of ESG valuation remains financial performance. SRI goes one step further than ESG by actively eliminating or selecting investments according to specific ethical guidelines. For impact investing, positive outcomes are of the utmost importance, meaning the investments need to have a positive impact in some ...

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