This E-Book is a detailed guide on the integration of Environmental, Social, and Governance (ESG) principles within investment practices. It starts with an introduction to ESG investments, covering their history, definitions, and strategic approaches. The manual then discusses recent developments in ESG integration, detailing market drivers, regulatory frameworks, and reporting frameworks. The book further delves into the investment process chain, from macro research and asset allocation to company analysis, portfolio construction, and trading. It underscores the importance of portfolio and risk analytics, compliance, reporting, and active engagement and voting. A significant portion is dedicated to responsible investing across different asset classes and how ESG factors can be incorporated into valuation models. It includes insights into the disclosure and data sources for ESG factors, identification of ESG value drivers, governance analysis, and the impact of environmental and social factors in specific sectors. Concluding with references, this E-Book is an essential resource for investors, financial analysts, and students seeking to understand and apply ESG criteria in investment decision-making and valuation.
