What is the largest sustainable investment strategy globally?

Question

BlackTom AI · Accepted Answer

Consider the question: What is the largest sustainable investment strategy globally? 
Option 1: ESG integration. This approach embeds environmental, social, and governance factors into investment analysis and decision-making across portfolios, and it is widely adopted by asset owners and managers around the world, making it a leading and broad-based strategy in practice. 
Option 2: Best-in-Class. This strategy focuses on selecting top-performing companies within each sector according to ESG criteria, but it tends to be more selective and narrower in scope than broad ESG integration, which reduces the overall universe of investable assets. 
Option 3: Impact investing. While impactful and increasingly popular, impact investing prioritizes measurable social or environmental outcomes alongside financial returns, yet its market share is typically smaller than broad ESG integration because it often targets specific themes or sectors rather than the entire investment universe. 
Option 4: Negative screening. This method excludes certain sectors or companies from a portfolio based on ESG issues, but exclusionary screens are just one filtering tool and do not constitute the broad, mandatory incorporation of ESG considerations into all investment analyses, limiting its reach compared with integration. 
In weighing these options, think about breadth and adoption across markets: which approach is applied across the widest range of asset classes, geographies, and investment strategies? Each option has its own merits, but the comparative scope and ubiquity matter for what is described as the largest sustainable investment strategy globally. 
Option 1’s ESG integration stands out for its comprehensive applicability and widespread implementation, whereas the other strategies, while valuable, tend to be more specialized, narrower in scope, or applied in more targeted contexts. 
Overall, the discussion centers on reach, scalability, and mainstream adoption of ESG considerations within investment processes worldwide.

FINA3401.13791.202610 Midterm CFA Quiz- Requires Respondus LockDown Browser

What is the largest sustainable investment strategy globally?

查看解析

登录即可查看完整答案

类似问题

Which of the following is not one of McKinsey's proposed dimensions of investing for the purposes of applying sustainable investing practices?

Relative to institutional investors, retail investors' share of sustainable investing assets has:

Which of the following has the highest proportion of sustainable investmenting relative to total managed assets?

Best-in-class investment:

Which of the following is not one of McKinsey's proposed dimensions of investing for the purposes of applying sustainable investing practices?

Which regions manage the highest proportion of sustainable and responsible investment assets?

Best-in-class investment:

Sustainable Investing (SI) focuses solely on financial returns without regard for environmental impact.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单