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ESG Integration and the Investment Management Process: Fundamental Investing Reinvented

Author

Listed:
  • Emiel Duuren

    (University of Groningen)

  • Auke Plantinga

    (University of Groningen)

  • Bert Scholtens

    (University of Groningen
    University of Saint Andrews)

Abstract

We investigate how conventional asset managers account for environmental, social, and governance (ESG) factors in their investment process. We do so on the basis of an international survey among fund managers. We find that many conventional managers integrate responsible investing in their investment process. Furthermore, we find that ESG information in particular is being used for red flagging and to manage risk. We find that many conventional fund managers have already adopted features of responsible investing in the investment process. Furthermore, we argue and show that ESG investing is highly similar to fundamental investing. We also reveal that there is a substantial difference in the ways in which U.S. and European asset managers view ESG.

Suggested Citation

  • Emiel Duuren & Auke Plantinga & Bert Scholtens, 2016. "ESG Integration and the Investment Management Process: Fundamental Investing Reinvented," Journal of Business Ethics, Springer, vol. 138(3), pages 525-533, October.
    • Handle: RePEc:kap:jbuset:v:138:y:2016:i:3:d:10.1007_s10551-015-2610-8
    DOI: 10.1007/s10551-015-2610-8
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    References listed on IDEAS

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    1. Thomas Berry & Joan Junkus, 2013. "Socially Responsible Investing: An Investor Perspective," Journal of Business Ethics, Springer, vol. 112(4), pages 707-720, February.
    2. Renneboog, Luc & Ter Horst, Jenke & Zhang, Chendi, 2008. "Socially responsible investments: Institutional aspects, performance, and investor behavior," Journal of Banking & Finance, Elsevier, vol. 32(9), pages 1723-1742, September.
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