A relic of the dot-com era may prove useful in attracting investors seeking specific exposures that are ESG-aligned.

By Roberto L. Reyes Gaskin and Anna Ngo

Shareholders, regulators, and other stakeholders continue to drive the integration of environmental, social, and governance (ESG) considerations into corporate strategy and practice. Recent surveys of institutional investors revealed that 22% expected their portfolios to be more than 75% aligned with ESG in the next two years,[1] while 62% stated that an ESG-aligned portfolio was more likely to exceed the market rate of return.[2] Many publicly traded companies are therefore engaged in integrating ESG into their business models, value chains, practices, and reporting.