TY - JOUR T1 - The State of ESG Investing: A Portfolio Management Perspective JF - The Journal of Impact and ESG Investing SP - 7 LP - 29 DO - 10.3905/jesg.2022.1.043 VL - 2 IS - 4 AU - Stephen M. Horan AU - Elroy Dimson AU - Clive Emery AU - Kenneth Blay AU - Glen Yelton Y1 - 2022/05/23 UR - https://pm-research.com/content/2/4/7.abstract N2 - Environmental, social, and governance (ESG) strategies have experienced a massive inflow of capital over the past decade, despite investors having little concrete evidence that ESG investing accomplishes its purported goals. This capital inflow also happened without investors possessing the information, tools, and methods needed to evaluate and communicate their specific ESG values, objectives, and preferences. Without evidence of efficacy and clearly articulated investment objectives, it is impossible for investors with ESG intent to know whether they are receiving what they are paying for, to distinguish between investment managers based on nonfinancial objectives, and to improve the likelihood of achieving positive ESG investing outcomes. This article highlights the key challenges faced by ESG investors and portfolio managers implementing ESG investment mandates. Recommendations include an issuer reporting framework that supports portfolio reporting and evaluation as well as an ESG product template that focuses on nonfinancial investment objectives, process elements, and measurable outcomes. ER -