The jargon-free guide to ESG
The concept of Environmental, Social and Corporate Governance (ESG) broadly captures asset owners’ efforts to be responsible investors. Not to be confused with ethical investing, ESG is about managing risk.
How so? A growing body of evidence shows that the integration of environmental, social and corporate governance considerations into investment decisions can have a positive impact on risk-adjusted returns, particularly over the long-term.
With this in mind, BNP Paribas Securities Services has published the 'ESG Made Simple' Guide for institutional investors.
The guide aims to clarify a definition of ESG and to sketch out a foundation on which institutional investors can build a strong ESG investment structure. It offers a practical approach to integrating ESG into the investment decision-making process, not least by outlining the building blocks of ESG analytics such as data and scoring.