Esg, Sri, and Impact Investing: a Primer for Decision-making

This primer aims to clarify the often-confusing terminology surrounding Environmental, Social, and Governance (ESG) investing, Socially Responsible Investing (SRI), and Impact Investing for institutional investors. It emphasizes that ESG investing is not a separate asset class but a set of considerations that can be integrated into investment strategies. The authors provide a practical framework for investors to evaluate different approaches based on their goals, beliefs, resources, and circumstances. The paper discusses various forms of ESG integration, active ownership, portfolio screening, and targeted impact investments, aiding informed decision-making in this evolving landscape.