Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do you think that the COVID pandemic would energize socially responsible investment (SRI). What is the role of ESG in SRI? https://en.wikipedia.org/wiki/Environmental,_social_and_corporate_governance ESG ESG refers

Do you think that the COVID pandemic would energize socially responsible investment (SRI). What is the role of ESG in SRI?

https://en.wikipedia.org/wiki/Environmental,_social_and_corporate_governance

ESG

ESG refers to the environmental, social, and governance practices of an investment that may have a material impact on the performance of that investment. The integration of ESG factors is used to enhance traditional financial analysis by identifying potential risks and opportunities beyondtechnical valuations. While there is an overlay of social consciousness, the main objective of ESG valuation remains financial performance.

SRI

Socially responsibleinvestinggoes one step further than ESG by actively eliminating or selecting investments according to specific ethical guidelines. The underlying motive could be religion, personal values, or political beliefs. Unlike ESG analysis which shapes valuations, SRI uses ESG factors to apply negative or positive screens on the investment universe. For example, an investor may wish to avoid any mutual fund orexchange-traded fund(ETF) that invests in companies engaged infirearms productionbecause they hold anti-conflict beliefs. Alternatively, an investor may opt to allocate a fixed portion of their portfolio to companies that contribute to charitable causes.

Link:https://www.wsj.com/articles/coronavirus-pandemic-could-elevate-esg-factors-11585167518

I'm totally lost here. Please help me understand this.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management

Authors: Chuck Williams

4th Edition

978-0324316797, 0324316798

More Books

Students also viewed these General Management questions