Environmental, social, and corporate governance (ESG) factors are now being factored into hedge funds’ decision-making process for new enterprises. In 2019, investors put about $21 billion into ESG-focused funds, a 400% increase over the previous year. According to Morningstar, net inflows into sustainable funds will exceed $50 billion by 2020. ESG and impact investment are also gaining traction in the business world, partially because it is more difficult to attract investors while sustaining a corporation that is unconcerned about the environment. The recent competition for board seats at Exxon Mobil Corporation demonstrates how important it is for huge firms to prioritize environmental concerns. Engine No. 1 LLC has committed to diversifying its oil business and incorporating ESG practices into its governance.
Here is Insider Monkey’s list of the 10 top hedge funds focusing on ESG and impact investing. Inclusive Capital is a San Francisco-based hedge fund. It is ranked tenth among the top ten hedge funds that focus on ESG and impact investment. Jeff Ubben, a well-known Wall Street figure who founded the fund last year, is in charge of it. On the list of the top 10 ESG and impact hedge funds, BlackRock Fund Advisors ranks ninth. The fund’s portfolio worth exceeds $542 billion, making it one of the world’s largest private funds. The technology, services, and utilities sectors of the market are where the majority of the investments are made. On the list of the top 10 hedge funds focused on ESG and impact investing, Parnassus Investments is ranked sixth. The technology, services, and industrial products sectors account for the majority of the fund’s investments. Microsoft Corporation is one of the major holdings. Triodos Investment Management is a fund founded in the Netherlands that specializes on impact investment. The fund invests in long-term projects all across the world. Some of the fund’s favored investment sectors are renewable energy and microfinance. It has a portfolio of about $631 million dollars. Exxon Mobil Corporation is represented on the board of Engine No. 1 LLC, which has a portfolio worth about $273 million. The firm has been pressuring the energy company to expedite its transition away from fossil fuels and toward better energy sources. For more details, click 10 Top Hedge Funds Focusing on ESG and Impact Investing.
