As a senior investment analyst at a reputable firm, you are tasked with incorporating Environmental, Social, and Governance (ESG) factors into your investment strategy. During a project, you discover that a potential investment candidate has been publicly criticized for its lack of environmental responsibility. However, your firm's quantitative analysis indicates that the company is a strong candidate for high returns based on its financial metrics.
Faced with this dilemma, you must decide how to present this information to your clients, many of whom prioritize ethical investments. You consider your responsibilities under the CFA Institute's Code of Ethics and Standards of Professional Conduct.