According to the Global Sustainable Investment Alliance (GSIA), as of 2020, the largest sustainable investment...

According to the Global Sustainable Investment Alliance (GSIA), as of 2020, the largest sustainable investment strategy globally is ESG integration.

Definition of ESG Integration: ESG integration involves the systematic and explicit inclusion of environmental, social, and governance (ESG) factors into financial analysis by investment managers.

GSIA Reports: The GSIA’s Global Sustainable Investment Review highlights that ESG integration has become the dominant strategy among sustainable investment practices. This approach is favored due to its comprehensive consideration of ESG factors in traditional financial analysis.

Growth Trends: The increasing awareness of ESG risks and opportunities has driven the growth of ESG integration, making it the largest strategy in terms of assets under management (AUM).

CFA ESG Investing References:

The CFA Institute’s resources on ESG integration emphasize the importance and prevalence of this strategy among investors. It outlines how ESG integration helps in identifying material risks and opportunities that could impact financial performance, thus supporting better investment decisions​​​​.

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