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.