CHAPTER 18

Building an ESG Portfolio

From values to an investment policy

Opening question

“How do I turn my values into a real portfolio?”

In this chapter

Why a portfolio starts with a written policy, not with a fund
Defining objectives: values, financial risks and impact goals
Constraints and exclusions: horizon, liquidity, currency, costs and access
Matching strategies to goals, and the core-satellite structure
Measuring the portfolio: weighted ESG score, carbon intensity and controversies, with a worked example
Costs and diversification: avoiding concentration in a few themes
Rebalancing, monitoring and reporting
An illustrative ESG portfolio for a Vietnamese investor in VND

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 18 — 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

18.1 From values to a policy

18.2 Objectives: values, risks and impact

18.3 Constraints and exclusions

18.4 Choosing strategies for each goal

18.5 Building blocks: core and satellites

18.6 Measuring the ESG profile of the portfolio

18.7 Costs and diversification

18.8 Rebalancing, monitoring and reporting

18.9 An ESG portfolio for a Vietnamese investor

← Chapter 17: Greenwashing and How to Spot It Chapter 19: Building and Back-Testing an ESG Index →