Which of the following is NOT one of McKinsey's proposed dimensions of investing for the purposes of applying sustainable investing practices?

The correct answer, which identifies the dimension that is not one of McKinsey's proposed dimensions of investing when applying sustainable investing practices, is indeed the regulatory and policy environment.

In the context of sustainable investing, McKinsey emphasizes dimensions such as investment beliefs and strategy, performance management, and public reporting. These dimensions focus on the internal frameworks and practices that organizations adopt to integrate sustainable investing into their investment processes.

Investment beliefs and strategy reflect how an organization articulates its stance on sustainability and incorporates those beliefs into its overall investment strategy. Performance management involves setting metrics and goals to assess how well investments achieve desired sustainability outcomes. Public reporting entails transparency and accountability, allowing stakeholders to see how sustainability considerations are integrated into investment decisions.

The regulatory and policy environment, while significant to the overall ecosystem of sustainable investing, serves more as a backdrop or influencing factor rather than a direct dimension proposed by McKinsey for operationalizing sustainable investing practices.