Publications
Publications
- 2023
- HBS Working Paper Series
ESG: From Process to Product
By: George Serafeim
Abstract
ESG measurement, analysis, management, and communication is a process that the financial industry has turned into a product, resulting in many investment funds using the ESG label. This has caused confusion, generating demand for a framework that defines the objectives and characteristics of ESG investment products. The main objective is to intentionally allocate capital and influence investees with measurable financial, environmental and/or social outcomes. The key characteristics are those of intentionality and measurability with the additional characteristics of materiality and additionality serving to enhance their overall significance.
Keywords
ESG; ESG (Environmental, Social, Governance) Performance; ESG Ratings; ESG Reporting; Investment Fund; Investment; Financial Services Industry
Citation
Serafeim, George. "ESG: From Process to Product." Harvard Business School Working Paper, No. 23-069.