Some 1,260 companies, managing $45 trillion worth of assets, are signatories of the United Nations’ “principles for responsible investment,” which recognize environmental, social, and governance (ESG) factors – and thus the long-term health and stability of companies and markets – as critical to investors. One signatory, CalPERS, one of the world’s largest institutional investors, has gone a step further: it will require all of its investment managers to identify and integrate ESG factors into their decisions – a bold move that could transform capital markets.