The AI (ChatGPT) ESG Stock Investing Guide: History of ESG Investing

Here is the response from ChatGPT for the prompt discuss history of ESG investing 500 words entered on April 27, 2023.

ESG investing, also known as socially responsible investing (SRI), has gained increasing popularity in recent years. The concept of ESG investing can be traced back to the 18th century, when the Religious Society of Friends, also known as Quakers, refused to invest in the slave trade and other industries that conflicted with their values.

In the 20th century, ESG investing gained more mainstream attention. The 1960s and 1970s saw a surge of interest in socially responsible investing, driven in part by the civil rights movement, the anti-war movement, and concerns about environmental pollution. During this time, a number of investment firms began offering SRI funds.

However, it wasn't until the 1980s that ESG investing really took off. In 1984, the Calvert Group launched the first socially responsible mutual fund in the United States, which screened companies based on a set of ethical guidelines. This fund paved the way for other SRI funds and helped to establish ESG investing as a legitimate investment strategy.

In the 1990s, the term "ESG" began to emerge as a way to describe the integration of environmental, social, and governance factors into investment decisions. This decade saw the launch of a number of ESG funds, including the Domini Social Equity Fund, which was launched in 1991 and was the first mutual fund to use a strict set of ESG criteria to screen potential investments.

The early 2000s saw continued growth in the ESG investing industry. In 2005, the United Nations launched the Principles for Responsible Investment (PRI), which called on investors to consider environmental, social, and governance factors in their investment decision-making. The PRI has since grown to become a global network of investors committed to promoting sustainable investing practices.

In recent years, ESG investing has become increasingly mainstream. In 2020, ESG funds saw record inflows, with more than $150 billion in new investments. This growth has been driven in part by a growing recognition of the importance of sustainability and social responsibility, as well as by the increasing availability of ESG data and analysis.

Today, ESG investing is a widely accepted investment strategy, with many large institutional investors and asset managers incorporating ESG factors into their investment decision-making. While there is still some debate over the effectiveness of ESG investing, there is no doubt that it has become an important and influential force in the investment world.