{"id":2667,"date":"2019-09-12T17:42:00","date_gmt":"2019-09-12T17:42:00","guid":{"rendered":"https:\/\/analystprep.com\/cfa-level-1-exam\/?p=2667"},"modified":"2026-01-24T17:24:07","modified_gmt":"2026-01-24T17:24:07","slug":"factors-investment-analysis","status":"publish","type":"post","link":"https:\/\/analystprep.com\/cfa-level-1-exam\/corporate-finance\/factors-investment-analysis\/","title":{"rendered":"Factors in Investment Analysis"},"content":{"rendered":"\n<iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/KxjLLIVuAg0?si=MKrUV3iO0PxzxqLp\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"VideoObject\",\n  \"@id\": \"https:\/\/analystprep.com\/cfa-level-1\/videos\/corporate-governance-esg\",\n  \"name\": \"Introduction to Corporate Governance and ESG (2021 Level I CFA\u00ae Exam \u2013 Reading 31)\",\n  \"description\": \"This CFA Level I video introduces corporate governance and environmental, social, and governance (ESG) principles. Part of AnalystPrep\u2019s CFA\u00ae Program video lessons, it explains governance structures, stakeholder responsibilities, and the role of ESG considerations in investment analysis, aligned with the CFA Level I curriculum.\",\n  \"uploadDate\": \"2018-10-20\",\n  \"thumbnailUrl\": \"https:\/\/img.youtube.com\/vi\/KxjLLIVuAg0\/maxresdefault.jpg\",\n  \"contentUrl\": \"https:\/\/www.youtube.com\/watch?v=KxjLLIVuAg0\",\n  \"embedUrl\": \"https:\/\/www.youtube.com\/embed\/KxjLLIVuAg0\",\n  \"duration\": \"PT32M38S\",\n  \"publisher\": {\n    \"@type\": \"Organization\",\n    \"name\": \"AnalystPrep\",\n    \"url\": \"https:\/\/analystprep.com\/\",\n    \"logo\": {\n      \"@type\": \"ImageObject\",\n      \"url\": \"https:\/\/analystprep.com\/wp-content\/uploads\/analystprep-logo.png\"\n    }\n  }\n}\n<\/script>\n\n\n\n<p>Environmental, social and governance factors are collectively referred to by the acronym \u201cESG.\u201d ESG integration is the practice of considering environmental, social, and governance factors in the investment process. Ideally, ESG integration should be implemented across all asset classes, including equities, fixed income, and alternative investments.<\/p>\n<p>Sustainable Investing (SI) and Responsible Investing (RI) are sometimes used interchangeably with ESG integration. Socially Responsible Investing (SRI) is an investment strategy that is said to incorporate ESG issues. This strategy has however historically been represented by the practice of excluding companies and industries from investment consideration on the grounds that they oppose an investor\u2019s moral or ethical values. An example would be to exclude tobacco companies from a stock portfolio due to the health-related consequences of smoking.<\/p>\n<p>Managers and investors tend to define and implement ESG mandates in many different ways. As a result, differences often arise among investors regarding the ESG factors that should be considered in the investment process and to what extent they should be implemented within a portfolio.<\/p>\n<p><em>Reading 31 LOS 31j:<\/em><\/p>\n<p><em>Describe how environmental, social, and governance factors may be used in investment analysis<\/em><\/p>\n<div class=\"notes_inv\"><hr \/>\n<p><em><a href=\"https:\/\/analystprep.com\/cfa-level-1-exam\/corporate-finance\/learning-sessions-curriculum-corporate-finance\/\">Corporate Finance &#8211; Learning Sessions<\/a><\/em><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Environmental, social and governance factors are collectively referred to by the acronym \u201cESG.\u201d ESG integration is the practice of considering environmental, social, and governance factors in the investment process. Ideally, ESG integration should be implemented across all asset classes, including&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2667","post","type-post","status-publish","format-standard","hentry","category-corporate-finance","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Factors in Investment Analysis | CFA Level 1 - AnalystPrep<\/title>\n<meta name=\"description\" content=\"Environmental, social and governance factors are collectively referred to by the acronym \u201cESG\u201d. - CFA Level 1 - AnalystPrep\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/analystprep.com\/cfa-level-1-exam\/corporate-finance\/factors-investment-analysis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Factors in Investment Analysis | CFA Level 1 - 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