What index provider FTSE Russell has learned about ESG investing

When the index provider FTSE first started integrating environmental and sustainability factors into indices back in 2001, the landscape for environmental social and governance (ESG) investments looked drastically different.

At the time, most ESG investing was associated with morally driven investment decisions such as divesting from tobacco or fossil fuels, and many companies thought it was just a passing fad, said Tony Campos, who leads FTSE Russell’s ESG business in the Americas.

Just over 15 years later, Campos said interest in integrating ESG factors into investment decisions has evolved from something only a small group of investors cared about into a phenomenon that has become widely accepted by many companies and asset owners. “There is a broader recognition that these issues can have a material impact on company performance in their portfolio,” he said.

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