ESG is not a new phenomenon, but its significance for asset managers is growing. With continued media scrutiny of sustainability and environmental pressures, "millennials" forming a greater proportion of the investing population and more vocal demands for a fairer society, it has become an increasing priority for investors and, particularly in Europe, a key consideration in asset allocation.

Asset managers are responding to this shift in investment practice, and regulators are focusing on ESG matters. In the first of our Dechert on ESG series, we examine what is meant by ESG, review the existing regimes and legal frameworks and outline some of the key regulatory developments across Asia, the European Union, the United Kingdom and the United States that are impacting the industry.