Building and ESG Investment Portfolio

Andreas Svoboda

Abstract


Investors with an interest in environmental sustainability, governance, and social (ESG) issues usually consider climate concerns as the guiding principles to their investments (Halbritter and Dorfleitner, 2015). Such focus on environmental and social sustainability paid off during the market crunch with oil prices cratered (Crowl, 2020). Recent data continues to show and report greater emphasis on ESG. PICTET (2021) noted that the investment industry has been focused on meeting market demands through regulatory compliance. Yet, common definitions of ESG are not agreed upon. ESG should be evaluated and assessed as an “environmentally-friendly classified through a green taxonomy model for guiding portfolio managers in their economic activities” (Khan 2019, p.104). It is suggested to invest in organisations, companies, and countries with excellent records in social, environmental, and corporate governance adding long-term value from an investment or financial perspective (LGT, 2021). This paper recommends a thematic and holistic approach to building an ESG portfolio

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References


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Copyright (c) 2021 Andreas Svoboda

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Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.