ESG Integration

ESG integration is defined by the UN Principles for Responsible Investment as: “The explicit and systematic inclusion of environmental, social and governance issues in investment analysis and investment decisions”. A key component of the ESG integration process is lowering risk and/or generating returns. Many investors utilize ESG factors to identify and mitigate risks in individual companies or sectors, viewing them as indicators of long-term sustainability and performance. Additionally, practitioners can leverage ESG data to identify investment opportunities aligned with sustainability objectives.