Kurtz (2020)

Lloyd Kurtz.  “Three Pillars of Modern Responsible Investment.”  Journal of Investing, Special Issue, 2020.

From the author’s abstract: “Modern responsible investment encompasses three distinct activities: alignment of portfolios with client values, using exclusions; integration of environmental, social, and governance (ESG) factors into the investment process…and impact, which in public markets is usually sought through engagement with corporate management. All three fields are progressing rapidly, and each has a distinctive set of professional practices and supporting empirical literature: The performance effects of typical exclusion policies apparently remain benign, but recent research suggests that information about ESG performance may have important implications for portfolio risk. The emerging evidence on engagement is potentially disruptive, with a small but strong group of papers suggesting that it can positively affect financial and stock market performance.”

Link: https://joi.pm-research.com/content/early/2020/01/16/joi.2020.1.116.abstract