Learn more about impact investing with our made simple guide
Environmental, social and governance (ESG) integration has become a salient component of best-practice investment management in recent years.
In 2006, the Principles for Responsible Investment (UNPRI) – a set of six investment principles encouraging ESG matters to be incorporated into investment practice – were launched by the UN. The principles were developed by investors for investors, and Hermes became a founding signatory.
For Hermes, ESG investing is not a recent phenomenon. Responsible investing is core to our business, and we have been at the vanguard of ESG investing for more than three decades.
We believe that a responsible approach to investing is appropriate across all asset classes and for all investment strategies. Investors can mitigate ESG risks and capture opportunities through five distinct ESG strategies, which are:
- Exclusionary screening
- Positive screening
- ESG integration
- Impact investing
- Active ownership
In order to explain ESG and impact investing, we have produced a Made Simple Guide together with the PLSA, which you can download below: