Environmental, social, and governance factors are increasingly important in investment decisions from "summary" of Institutional Investment Management by Frank J. Fabozzi
In today's investment landscape, there is a growing recognition of the significance of environmental, social, and governance factors in guiding investment decisions. Institutional investors are increasingly considering these factors as essential components of their investment strategies. Environmental factors encompass issues such as climate change, resource depletion, and pollution. Social factors involve considerations related to labor practices, human rights, and community relations. Governance factors pertain to the structure of corporate boards, executive compensation, and shareholder rights. The integration of environmental, social, and governance factors into investment decisions is driven by a range of factors. These include the desire to manage risks effectively, enhance long-term investment performance, and meet the evolving expectations of stakeholders. Investors are recognizing that compan...
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