ESG investing has grown in popularity and influence over the last decade, having reached a size and level of mind share that is impossible to ignore. We have done extensive research in recent years in an attempt to understand the merits of ESG integration and identify ways in which Davenport Asset Management can enhance its research process with its implementation. Throughout this journey, we have uncovered many inconsistencies and contradictions in the way ESG criteria are defined/implemented. Additionally, we consider ESG performance data to be insufficient, inconclusive and misleadingly marketed in many cases. All of this said, our research suggests that ESG does have the potential to create value as a part of a fundamental manager’s risk management process. We therefore have devised a set of new reports, procedures and organizational enhancements that we believe will improve our research process. Importantly, we believe these updates integrate seamlessly into our current workflow and do not cause any undue distraction or sacrifice of our core values or discipline around fundamental bottoms-up research. Below, we sort through key industry dynamics, terminology, misconceptions and key findings of our research.