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ESG and Analysis

ESG Investing and Analysis

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A key motivation for investors in the practice of considering ESG (environmental, social, and governance) issues in financial analysis is to gain a fuller understanding of the companies in which they invest and the portfolios that they construct.

Many investors use environmental, social, and governance data in security analysis and portfolio construction to identify material risks and growth opportunities. ESG data are not universally part of mandatory financial reporting, and identifying, understanding, and incorporating the data into investment analysis is challenging. CFA Institute aims to provide research and thought leadership to aid practitioners in ESG investing and analysis.