The Business Case for ESG Investing for Pension and Sovereign Wealth Funds

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Jun 2020
Investors' interest in investments that consider environmental, social, and governance factors (ESG investments) is increasing as they seek investments that combine financial returns with societal benefits. Using Chile's sovereign wealth funds and pension funds as a case study, this policy brief contributes evidence indicating that ESG investments can deliver better environmental, social, and governance performance without sacrificing financial returns. Given their large share of global assets and long-term investment horizon, as well as governments' concerns for societal outcomes, ESG investments are particularly important for sovereign wealth funds and pension funds.