ESG Integration and the Investment Management Process: Fundamental Investing Reinvented

By E. V. Duuren, A. Plantinga, Bert Scholtens. 2016

552 citations recorded by the source corpus.

We investigate how conventional asset managers account for environmental, social, and governance (ESG) factors in their investment process. We do so on the basis of an international survey among fund managers. We find that many conventional managers integrate responsible investing in their investment process. Furthermore, we find that ESG information in particular is being used for red flagging and to manage risk. We find that many conventional fund managers have already adopted features of responsible investing in the investment process. Furthermore, we argue and show that ESG investing is highly similar to fundamental investing. We also reveal that there is a substantial difference in the ways in which U.S. and European asset managers view ESG.

Subfields: Economics and Econometrics, Finance, Strategy and Management

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

In Strategy and Management

Citations in the corpus

(Preprint) (2018, background): “Sustainable rating agencies and sustainable indices are the primary referents in terms of corporate sustainability assessment for the sustainable investment market (Duuren et al, 2015).”
Doing Well by Doing Good: A Systematic Review and Research Agenda for Sustainable Investment (2019, background): “Dam & Scholtens [73] developed a coherent economic framework with the help of key financial accounting ratios.”
Finance and the Earth system – Exploring the links between financial actors and non-linear changes in the climate system (2018, unknown): “2015; van Duuren et al. 2016).”
Impact of Environmental, Social, and Governance Information on Economic Performance: Evidence of a Corporate ‘Sustainability Advantage’ from Europe (2019, background): “The concept of ESG is used in different contexts and has no univocal definition [2]; it is typically used in corporate procedures to denote a set of relevant environmental, social and governance-related elements that allow the assessment of long-term sustainability of investment [24,25] by integrati”
The risk-adjusted return potential of integrating ESG strategies into emerging market equities (2018, background): “ESG research-based investing strategies evaluate environmental, social, and governance factors as non-financial dimensions of a stock’s performance (van Duuren, Plantinga, and Scholtens 2016).”
Revisiting the impact of ESG on financial performance of FTSE350 UK firms: Static and dynamic panel data analysis (2021, background): “Van Duuren et al. (2016) explains that ESG investing resembles fundamental investing and that most investors buy additional shares due to ESG-related information.”