ESG Factors and ESG Investing Approaches

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Question

How does positive screening differ from negative screening?

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Answer

Positive selects ESG leaders; negative excludes violators.

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Question

How can ESG create opportunity rather than just risk?

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Answer

Through innovation or first-mover advantage in sustainable products.

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Question

A fund buys only the highest-ESG-rated firms within each industry. Which approach is this?

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Answer

Positive screening.

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Question

What defines thematic investing in ESG?

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Answer

Investing around a specific ESG theme.

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