The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Closing the gap in responsible investing

As more investors wonder how fund managers are weighing environmental, social and corporate governance factors in their investment decisions, the evidence that these factors can positively impact performance is growing.

This article appears courtesy of Global Investor

In many board rooms, discussions of Responsible Investing (RI) still focus on it as a mythical one-horse show—a perceived investment practice that must automatically limit the investment universe and thereby limit returns.

Over time, this perception is breaking down. In fact, an even larger number of pension committees now sit in board rooms to consider the merits rather than the limits of integrating environmental, social and governance (ESG) factors within investment processes.

By now, this group of forward-looking trustees knows that those increasingly familiar initials —RI, ESG—potentially relate not only to social conscience but also to improved investment performance and better risk management, though it has taken some doing to get to this point. October 2007 saw the publication of Demystifying Responsible Investment Performance, a joint report by the Asset Management Working Group of the United Nations Environment Programme Finance Initiative (AMWG UNEP FI) and Mercer.

Highlighting academic research examining the relationship between ESG issues and financial performance, the report helped to dispel the preconception that integrating ESG factors into investment analysis and decision-making automatically leads to financial underperformance (the majority of studies reviewed displayed a positive or neutral impact).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree