CFA Institute Announces Position on ESG Integration

https://www.cfainstitute.org/-/media/documents/article/position-paper/cfa-institute-position-statement-esg.ashx?mkt_tok=eyJpIjoiTTJRMFpqa3daRFppT1RVNCIsInQiOiJTRlVuN1BhZktXY3N4dUFFdW1hNWhkMjN5UVlEZmltbjdKRFJORGdVWURZWFowUlhZY3Mxa0Z0UndoTEZpeGJ6UEZIb2U2XC91eCtwY2ZqZ2NYRXo0K25cL1lZcnZrd2MyeTVOS2JWNzM1ZHYxcTBZaTF5bFpqWDZTZVZxd01nbUhQIn0%3D

CFA Institute consistently monitors key debates and evolving issues concerning the role and application of environmental, social, and governance (ESG) information in the investment management process. More thorough consideration of ESG fac- tors by financial professionals can improve the fundamental analysis they undertake and ultimately the investment choices they make.

CFA Institute is specifically focused on the quality and comparability of the ESG information provided by corporate issuers and how to integrate various ESG factors into the investment selection process.

The positions below reflect the organizational views of CFA Institute and are intended to guide understanding of ESG.

Author: Christopher K. Merker, Ph.D., CFA

Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught the course “Sustainable Finance” since 2009. Executive director of Fund Governance Analytics (FGA), an ESG research partnership with Marquette University, he is a member of the CFA Institute ESG Working Group, an international committee currently exploring ESG standards, publishes the blog, Sustainable Finance, which covers current topics around governance and sustainability in investing, and is co-author of the book, The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.