How Scoring Helps Sustainable Investing

ESG scores are increasingly used to assess companies’ policies and controversies and increasingly determine how capital is allocated in the space

Marina Gerner 29 July, 2019 | 1:27PM

Microscope

When ethical investing was first established in the UK more than three decades ago, those who wanted to invest ethically traditionally focused on excluding certain companies such as weapon manufacturers or tobacco producers from their portfolios.

But over the last decade, the use of environmental, social and governance (ESG) factors has become more commonplace. The term “sustainable investing” is, at times, used to refer to both of these approaches and it is increasingly in vogue among fund firms.

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About Author

Marina Gerner  is a freelance journalist

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