Last Updated:
1 Jun 2020

Investment Governance and the Integration of Environmental, Social and Governance Factors

This paper examines how pension funds, insurance companies and asset managers approach environmental, social and governance (ESG) risks and opportunities in their portfolio investments, and whether current investment governance standards in legal and regulatory frameworks encourage or discourage them from integrating ESG factors in investment decision-making.1 Concerns have been raised that investment governance standards may be unduly restrictive and so discourage institutional investors from taking ESG factors into account in their analysis, even when ESG integration could lead to more resilient investment portfolios.