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There are four principal drivers of this progress: Client demand: Growing demands from beneficiaries and clients for greater transparency about how their money is invested Regulation: More guidance from regulators that considering ESG factors is part of an investors fiduciary duty Sustainability outcomes: Growing interest from investors and other stakeholders in examining how investment decisions affect real-world outcomes Materiality: Increasing recognition that certain ESG factors can affect risk and return ESG integration in listed equity: A five-part process The PRI defines ESG integration as the process of including ESG factors in investment analysis and decisions to better manage risks and improve returns

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