HomePreqin AcademyLesson 5: ESGESG Strategies

ESG Strategies

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What Are the Different Strategies of ESG?

In practice, ESG approaches differ based on the level of integration. We'll focus on the three most common approaches, from low to high ESG integration.

Additional Types of ESG Investing

Explore the drop-down below to find out additional types of ESG investment strategies.

Thematic Investing

Thematic Investing: Aims to identify macro-level trends, and the underlying investments that stand to benefit from the materialization of those trends.

Ethical Investing or Socially Responsible Investing (SRI)

Ethical Investing or Socially Responsible Investing (SRI): Practice of selecting investments based on predetermined moral expectations. This investment practice seeks to consider both financial return and social/environmental good, to bring about positive social change. It is a way to account for both positive and negative externalities associated with the prospective or existing investment.

Active Ownership

Active ownership: Refers to the practice of engaging in a dialogue with companies on ESG issues, exercising ownership rights and dialogue to promote change. Active ownership can be expressed through voting activities such as proxy voting, discussions with management, shareholder engagement, and shareholder resolutions.

In this lesson, you became more familiar with the different strategies of ESG investment. Next up, you'll learn all about why investors consider allocating to ESG-driven assets.

Go back: Understanding ESG

Next up: Why Invest in ESG?