Objectives On completion of this tutorial, you will be able to:

• Identify how ESG investors comprise of sustainable, responsible, and impact investors
• List the factors driving the growth in ESG investing
• Identify the characteristics of ESG investors
• Recognize the advantages and disadvantages of passive approaches to ESG investing
• Compare the risk-adjusted performance of ESG and traditional investment strategies

Tutorial Overview ESG investing - comprising sustainable, responsible, and impact investing - is any investment strategy that goes beyond simple financial considerations to incorporate environmental, social, and governance (ESG) factors. Sustainable investing and responsible investing are very similar and often used interchangeably and ESG investing. Impact investing is a more extreme form of ESG investing and is not usually used interchangeably with ESG investing. ESG investing has experienced explosive growth in recent years, with both institutional and retail investors turning to this form of investing to enhance returns and reduce risk. Passive investment instruments have accelerated the shift to this form of investment, and a growing body of evidence supports the efficacy of incorporating ESG into the investment decision-making process. This tutorial discusses the three forms of ESG investing, identifying the key drivers of the uptake of ESG investing, and exploring the characteristics of ESG investors. Prerequisite Knowledge ESG - Primer Tutorial Level: Intermediate Tutorial Duration: 60 minutes