An Integrated Approach to Quantitative ESG Investing

ESG investing is an area of active interest for both the investment and academic communities. Despite the intense interest, there currently is no agreed upon definition for ESG investing, or how to best build investment portfolios that incorporate both return and sustainability dimensions, both of which are important for sustainability-minded investors. In this article, the authors categorize the broad types of ESG investing currently in the market and introduce an ESG investment framework. This results in a portfolio that optimally combines the dual objectives of alpha and sustainability outperformance.

“An Integrated Approach to Quantitative ESG Investing,” is published in the Journal of Portfolio Management Ethical Investing February 2020 issue.