Ellison Graves

Breakdown of ESG Investment:

1. Founding of ESG Investing


What is ESG?


ESG (Environmental, Social, and Governance) investing refers to an approach to investing that considers environmental, social, and governance factors alongside financial returns.


Origin:


While the idea of ethical investing dates back decades, ESG as a formalized framework was first introduced in 2004 through a United Nations initiative.


The term "ESG" appeared in the UN Global Compact's report "Who Cares Wins," which advocated for integrating ESG factors into capital markets to promote better sustainability and societal outcomes.


City:


The initiative that coined ESG was launched in New York City, where the UN headquarters is based.


2. ESG Market Size (Trillions)


As of recent estimates (2023), ESG investments globally are valued at $50 trillion, with projections to reach $60 trillion by 2025.


ESG-focused funds and strategies represent a significant and growing portion of global assets under management (AUM).


3. Key Timeline of ESG Development


IN


1960s-1970s: Ethical investing roots emerge (e.g., avoiding tobacco or apartheid- related investments).


2004: ESG framework formally introduced via the UN Global Compact.


IN


2010s-Present: Exponential growth, driven by climate change awareness, regulatory pressures, and investor demand for sustainable practices.


EG


Ellison Graves

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