The first step in the effective design of a client ESG investment mandate is to:

The first step in designing an ESG mandate is to clarify client objectives and document their ESG investment beliefs.

Why B (clarify needs and investment beliefs) is correct:

Establishes clear goals for ESG integration

Aligns expectations with investment strategy

Why not A or C?

A (Tailoring the approach) happens after defining client beliefs.

C (Fund manager alignment) is important but comes after client needs are established.