Revising Investment Strategy for Green Earth Foundation

The Green Earth Foundation is dedicated to environmental conservation and education, operating with a substantial endowment aimed at funding various initiatives over an indefinite timeframe. Recently, the foundation's board of directors has expressed concerns regarding the sustainability of the current investment strategy, particularly given the growing focus on environmental, social, and governance (ESG) factors in investing. As the newly appointed Chief Investment Officer (CIO), you have been asked to review the foundation's current investment policy and propose a revised strategy that might better align with the mission of the foundation while addressing the risks associated with market volatility and ESG criteria.

In your essay, discuss the key considerations you would make in formulating the revised investment policy. Additionally, outline how you would incorporate ESG factors into the investment analysis process while ensuring the foundation meets its long-term objectives. Be sure to address issues related to risk management, asset allocation, and performance evaluation.