Helping Hand Questions for ESG-Investing

Private equity investors who primarily view ESG integration as a way to attract clients are more susceptible to allegations of greenwashing. Greenwashing occurs when a company or investor overstates or falsely claims their commitment to sustainability, often for marketing purposes rather than genuine ESG improvements.ESG Reference: Chapter 7, Page 325 - ESG Analysis, Valuation & Integration in the ESG textbook.

Engagement is least applicable in sovereign debt investments because investors have less influence over government policies and actions compared to corporate entities. (ESGTextBook[PallasCatFin], Chapter 6, Page 283)

Excluding tobacco from the investment universe is an example of a conduct-related exclusion. This approach involves excluding industries or companies that are deemed to engage in unethical or harmful activities, such as tobacco production, based on their conduct or the nature of their business.ESG Reference: Chapter 7, Page 325 - ESG Analysis, Valuation & Integration in the ESG textbook.

Collective engagement, where multiple investors collaborate to push for changes in a company, is typically the most powerful form of escalation as it brings greater pressure on the company to act. (ESGTextBook[PallasCatFin], Chapter 6, Page 285)