Environmental, Social, Governance (ESG)

Source: AQR. As of 06/30/2025, AQR managed ~$20 billion in dedicated ESG solutions. Our ESG solutions are designed to help our clients meet their sustainability objectives alongside their traditional investment goals.

We are unwavering in our commitment to fulfilling our fiduciary obligations. Our firm’s approach to ESG is designed to support this goal. As fiduciaries, we focus on systematically integrating ESG considerations to the extent that empirical evidence demonstrates their ability to enhance returns or manage risk. Our research team leverages insights and experience to identify ESG signals that are economically intuitive, empirically validated, and broadly applicable across our investment universe.

AQR has used governance signals in our proprietary models since our inception in 1998 and over time we’ve broadened our approach to include other rigorously tested, return-additive ESG signals in over 77% of our assets under management (as of 9/30/2025). In practical terms, this means that our ESG-related signals benefit from the same research, implementation, and oversight processes as non-ESG-related information. For us this ensures that relevant ESG factors are integrated into our investment process in a disciplined and systematic manner , consistent with our overall research approach.

AQR’s stewardship approach is grounded in transparency. This focus on transparency is a natural extension of our belief that greater disclosure—including on material ESG issues—can be a positive for all market participants. We believe this leads to better alignment between companies and their investor base, as well as potentially more accurate pricing of ESG risks and opportunities.

AQR has been a signatory to the UN Principals for Responsible Investment (PRI) since 2014 and in 2019, AQR and PRI co-created a framework covering the various approaches to responsible investing.