Uses ESG performance criteria and financial characteristics to select the best companies within an industry or a sector, usually through a sustainability rating framework.

Excluding individual companies or entire industries from portfolios.

Seeks to incorporate material ESG risks and growth opportunities directly into traditional security valuation (e.g., through inputs such as earnings, growth or discount rates) and portfolio construction.

Intends to leverage shareholder influence and attempts to shift corporate behavior toward greater compliance with ESG principles.

Seeks to generate a positive social or environmental impact alongside a financial return.

Identifies themes related do ESG factors, determines which industries and companies are positioned to benefit from these trends, and constructs portfolios accordingly.