The integration of ESG factors into the investment process has become a primary objective of certain investors for a multitude of reasons. Despite the significant amount of assets being directed into investment strategies that incorporate ESG factors, however, the general industry consensus is that the adoption of formal ESG policies by hedge fund managers remains fairly uncommon. Moreover, there is no one-size-fits-all approach for managers that incorporate ESG factors into their investment processes. That is, in part, because many early adopters of ESG investing in the hedge fund space have done so at the request of their investors. Consequently, managers have had to develop a variety of approaches to meet the diverse needs of investors without uniform requirements. The first article in this two-part series explores the development of ESG investing and its prevalence in the hedge fund space. The second article reviews advice from industry experts on considerations for managers wanting to develop an ESG investment policy, as well as the due diligence demands from investors seeking managers that incorporate ESG factors into the investment process. See “Survey Identifies Drivers and Obstacles for Sustainable Investing” (Apr. 2, 2020); “Preparing for the Impact Revolution: How Fund Managers Can Implement the Philosophy of ‘Doing Well by Doing Good’” (Mar. 21, 2019); and “More Hedge Funds Are Employing Environmental, Social and Governance Investment Criteria” (Nov. 3, 2011).