ESG performance attribution is used to measure the impact of ESG factors on investment returns.

Why C (Brinson and risk factor attribution) is correct:

The Brinson model decomposes portfolio returns into allocation and selection effects.

Risk factor models help determine whether ESG factors explain investment performance.

Why not A or B?

A is incorrect—ESG attribution in fixed-income portfolios is complex due to limited data and different risk structures.

B is incorrect—commercial ESG tools exist, but attribution still requires custom modeling.