CHAPTER 2

A Short History of Responsible Investing

From ethical exclusions to the Paris Agreement

Opening question

“Is ESG a recent fashion, or does it have deeper roots?”

In this chapter

Religious and ethical roots: avoiding "sin" long before ESG
The first ethical funds and why they excluded what they did
Divestment campaigns, from South Africa to tobacco
From screens to measurement: indexes, reporting standards and the Global Compact
The birth of ESG and the UN Principles for Responsible Investment (2006)
Climate change, the Paris Agreement and the rise of sustainable finance
What exclusions cost, with a worked example
Backlash, greenwashing and a more rigorous phase — in the West and in Asia

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 2 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

2.1 Old roots: faith and ethics

2.2 The first ethical funds

2.3 Divestment campaigns

2.4 From screens to measurement

2.5 The birth of ESG

2.6 Climate and the Paris Agreement

2.7 The sustainable finance boom

2.8 Backlash and maturity

2.9 Responsible investing in Asia and Vietnam

2.10 Lessons from history

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