The number of hedge funds incorporating environmental, social and corporate governance criteria in making investment decisions is small but growing, according to a report from the Forum for Sustainable and Responsible Investment.
The recent industry association paper, Sustainability Trends in U.S. Alternative Investments, identified 47 so-called ESG hedge funds managing $2.6 billion, including such boldfaced names as Perella Weinberg Partners, Passport Capital and Highland Capital Management. That’s a small amount compared to the $80.9 billion at 375 private equity, venture capital, property and other alternative investment funds that engaged in some form of sustainable investing in 2011.