The Importance of Responsible Investment

Abstract

Responsible investment (IR) has become increasingly relevant in the investment and asset management industry. According to the Global Sustainable Investment Alliance, assets incorporating IR strategies represent $22.9Tr globally, representing 26% of total professionally managed assets. ESG (Environment, Social and Governance) aspects are considered important areas when assessing the merits and risks of a company or an investment. The IR universe presents a high level of maturity and technical sophistication, typical of the financial sector. To achieve the proposed objectives, a qualitative methodology was adopted, using the analysis of norms and the literature review in order to analyze and theoretically understand the different concepts of Socially Responsible Investment and what ESG metrics are.