ESG strategies

Estimated reading time: 4 min.

WHY ESG STRATEGIES MATTER

ESG (Environmental, Social, and Governance) and SRI (Socially Responsible Investment) funds have become a growing trend driven by:

International regulations,
Client expectations for responsible finance,
And a proven link between performance and ESG strategies.

As a result, ESG is no longer a niche approach but a core component of asset management strategies worldwide.

MAJOR ESG INVESTMENT APPROACHES

There are 3 major ESG approaches, from which multiple strategies can be designed:

Positive screening or Best in class – favoring firms with strong ESG practices.
Negative screening or criteria-based exclusions – excluding industries or companies that do not meet ESG standards.
Thematic or impact investing – targeting sectors or projects that directly address sustainability challenges.

Beyond these, asset managers increasingly rely on combinations of strategies to strengthen portfolios and meet both regulatory and investor expectations.

STUDIES LINKING ESG AND PERFORMANCE

Research continues to show that ESG is not just about ethics — it has a direct impact on long-term performance. Key studies include:

These works highlight the positive correlation between ESG integration and both financial resilience and risk management.

ESG INVESTMENTS AND STRATEGIES

For a deeper understanding of ESG concepts, frameworks, and case studies, explore these resources:

KEY TAKEAWAY

Whether through screening, thematic investments, or combined strategies, ESG integration is becoming a standard in asset management. With regulatory pressure, client demand, and a clear link to performance, ESG is no longer optional — it is strategic.

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