Does It Pay to Care About ESG?

Environmental, social and governance (ESG) investing approaches have increasingly become a hot topic with even the largest institutional investors taking notice. Following much involvement in the ESG space, CalPERS recently decided to more officially throw their hat into the ring with the announcement of a year-long pilot program.

According to eVestment data, overall AUM for ESG strategies has grown steadily over the last several years with assets just over $42.8 billion in 2008 to over $124.5 billion as of 1Q2015. But does it pay to care about ESG? Are non-financial benefits quantifiable? Do investor ESG convictions span across asset classes? What does the future hold for ESG adoption?

In this whitepaper, to really dig deeper into what investors and consultants are thinking about performance, costs and the future of ESG adoption, we interviewed three well-respected and experienced ESG allocators: Jay Satterfield, CIO, Freed-Hardeman University; Scott Perry, Partner and Impact Investing Team Member, NEPC; and Nichole Roman-Bhatty, Managing Partner and Chair of Impact Investing, Marquette Associates.