As environmental, social and governance (ESG) principles become
increasingly mainstream and with asset managers under increasing
pressure to embrace the trend, the number of fund launches
featuring ethical and sustainable credentials has grown
significantly in the past few years. However, the ESG term itself
may still be somewhat perplexing for investors, especially given
the proliferation of ESG definitions.
Although there is no single, widely accepted definition of what
ESG principles represent or encompass, a number of international
initiatives have been undertaken in the past 15 years in order to
clarify the practical meaning and implications of sustainability
for investors.
