ESG strategy points to keep in mind before investing

When it comes to Environmental, Social, and Governance (ESG) integration, there are several strategies that investors can consider for purpose-driven decision-making1:

1. Negative Screening: Exclude specific investments based on predefined ESG criteria1. 
2. Positive Screening: Select investments that meet specific ESG criteria or are considered best-in-class1. 
3. Portfolio Tilt: Adjust the portfolio’s weightings to favor companies with strong ESG performance1. 
4. Thematic Investing: Focus on specific ESG themes, such as renewable energy or sustainable agriculture1. 
5. Impact Investing: Invest in companies or funds with the intention of generating measurable environmental or social returns2. 
6. Engagement and Active Ownership: Engage with companies to drive positive change through active ownership and proxy voting1. 
7. ESG Integration: Integrate ESG factors into the investment process to better understand a company’s ESG performance and make purpose-driven investment decisions1.

These strategies can help align financial goals with environmental and social objectives, creating opportunities for positive impact while maximizing returns1.

Please note that these insights are based on general trends and may not capture all the nuances of ESG investment strategies. For more specific information, I recommend consulting industry reports or experts in the field.

Source: 1. online.hbs.edu 2. d-cdn.fitchlearning.com 3. economictimes.indiatimes.com 4. finbold.com 5. kalkinemedia.com +3 more