The ESG manual emphasizes thatfundamental investment strategies—especially those involving concentrated portfolios—employ a blendof qualitative and quantitative techniques. Human judgment, management interviews, and narrative assessments are qualitative, whereas data metrics, ratings, and modeled impacts are quantitative.

“Fundamental active strategies… tend to use ESG techniques that have both qualitative and quantitative elements… ESG analysis can be either qualitative or quantitative or have elements of both.”

This hybrid approach allows for a robust analysis that combines sector-specific data with nuanced evaluation of ESG risks and opportunities.