Integration of ESG factors can improve longterm performance from "summary" of Institutional Investment Management by Frank J. Fabozzi
The integration of environmental, social, and governance (ESG) factors into investment decision-making processes has gained traction in recent years. Institutional investors are increasingly recognizing that considering ESG factors can lead to better long-term performance. By incorporating ESG criteria into their investment analysis, investors can identify potential risks and opportunities that may not be captured by traditional financial analysis alone. For example, companies with strong ESG practices may be better positioned to weather environmental or social crises, leading to more stable returns over time. On the other hand, companies with poor ESG performance may face reputational damage or regulatory scrutiny that could negatively impact their ...
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