The importance of the environmental, social and governance (ESG) impacts in a portfolio is increasing. More and more, investors expect that any robust investment process will also include ESG characteristics – not at the expense of investment returns, but rather as a driver of long-term investment performance. Corresponding with this thematic, inflows into ESG strategies—both by investors and institutions—have risen in recent years, as shown in figure 1. Indeed, in 2018, $1 out of every $4 of US assets under management was invested in sustainable strategies. At the same time as this increasing focus on ESG, passive investments—including index funds...