Additionally, large market participants are deploying ESG strategies and sustainability as part of their overall investment evaluation process. That could signal to advisors and retail investors that there is enduring validity in ESG investing.

“Large asset owners, such as sovereign wealth funds and pension funds, are increasingly integrating ESG and climate considerations into their investment processes and decision-making. They use the Paris Agreement to identify sustainability outcomes, prioritize collaborative engagements, provide regular reporting on climate and ESG issues, and implement and evaluate sustainable investments,” concluded the IEEFA.

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