Discretionary index-based ESG integration approaches tend to be:

Discretionary index-based ESG integrationuses ESG data and rankings as part of aprocessrather than simply following a fixed rule-based or factor-based methodology. CFA materials describe this as “process-orientedintegration,” meaning that asset managers usequalitative judgmentandongoing interpretationof ESG signals to adjust exposures, rather than relying solely on automated factor or rule frameworks.