What is ‘ESG integration’?
ESG refers to environmental, social and governance factors relating to the companies in which fund managers invest. This page explains the aspects involved.
ESG integration refers to how fund managers integrate ESG considerations into their investment strategy.
At Artemis, we believe that considering ESG factors when making investment decisions and/or engaging with the companies that a fund invests in (known as ‘stewardship’) can help to improve investment returns and to mitigate material ESG risks which might negatively impact investment returns.
ESG considerations can be different for companies in different sectors or countries and each fund manager may take a different approach to how they integrate ESG factors depending on their investment strategy, asset class or the country/region in which they invest.
ESG can encompass a wide range of factors. The table below provides some examples of issues fund managers may consider when integrating ESG:
| Environmental | Social | Governance |
|---|---|---|
| Environmental criteria consider how a company performs as a steward of the natural environment | Social criteria consider how a company engages with and manages relationships with people (its employees, suppliers, customers and the communities where it operates) | Governance criteria consider how a company operates, including leadership, executive pay, audits, internal controls and the rights of shareholders |
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Examples
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Read more about ESG integration at Artemis – how Artemis’ funds integrate investment and stewardship
This information is intended to provide you with help and guidance about investing generally and about investing with Artemis. It is not a marketing communication and should not be used to make investment decisions. You should always refer to the relevant fund prospectus and KIID/KID before making any final investment decisions.
Artemis does not provide investment advice on the advantages or suitability of its products and no information provided should be viewed in this way. Should you be unsure about the suitability of an investment, you should consult a suitably qualified professional adviser.