Which of the following is NOT a way to assess effective ESG integration by a fund manager, according to PLSA?

The reasoning behind the assertion that the financial return directly attributable to ESG factors is not a method for assessing effective ESG integration by a fund manager highlights an important aspect of ESG evaluation. While assessing financial performance is crucial, the focus on direct attribution of financial returns to ESG factors implies a level of quantification that can be quite challenging. ESG integration often encompasses qualitative aspects, methodologies, stakeholder interests, and risk management that cannot easily be translated into clear financial outcomes.

Effective ESG integration is better assessed through approaches that examine managers' rationale and methodologies regarding ESG considerations. This includes understanding how they identify and respond to various ESG risks, analyze material ESG factors, and consider long-term trends that can shape investment decisions. These methods provide a more comprehensive view of how ESG factors influence investment strategies rather than trying to strictly correlate them to financial results.