This guide provides a quick summary on how an investor can manage ESG issues in listed equity portfolios. It outlines options on how to include ESG issues when building an equity portfolio, and on raising such issues during discussions and regular engagements with companies. It compares the three main approaches to ESG – stock screening, thematic investing and full integration – across three broad areas of equity management, from traditional active stock-picking to quantitative analysis and passive indexing. It then offers a primer on integrating ESG into financial analysis and improving investee companies’ ESG performance.
