The largest and second largest asset classes, which implement responsible investment, are respectively...

The correct choice identifies public equities and fixed income as the largest and second largest asset classes implementing responsible investment practices. This is grounded in the significant allocation of assets that investors dedicate to these two areas.

Public equities represent a substantial portion of investment portfolios, making them a primary area for the integration of environmental, social, and governance (ESG) criteria. Investors are increasingly analyzing companies' ESG performances when making equity investment decisions, as they recognize that such factors can influence long-term financial returns and mitigate risks.

Fixed income also plays a pivotal role in responsible investing, as many institutional investors, such as pension funds and insurance companies, utilize fixed income securities to balance their portfolios and generate stable income. This asset class has seen considerable growth in green bonds and other sustainable debt instruments, allowing investors to finance projects with positive environmental impacts while still receiving returns.

Other options, while relevant in certain contexts, do not represent the largest scopes of responsible investment. Passive equities and active equities focus more on the management style rather than asset class size. Infrastructure often falls into niche investing rather than constituting a primary asset class like equities and fixed income. Hedge funds and commodities tend to attract fewer responsible investment strategies, and are generally not as leveraged in terms of ESG criteria compared to the