Final answer:
The foundations for ESG investing in modern markets were laid through the establishment of securities regulation following the 1933 Federal Securities Act and influenced by environmental thought leaders such as Aldo Leopold and Rachel Carson, which led to a shift in public sentiment and corporate governance.
Step-by-step explanation:
The foundations for ESG (Environmental, Social, and Governance) investing were laid for modern markets through various historical developments. Some of these foundations were a result of legislative actions, such as the Federal Securities Act of May 27, 1933, which helped establish legal standards for the disclosure of information relevant to publicly traded securities like stocks and bonds. This Act, coupled with the subsequent creation of the Securities and Exchange Commission, began to regulate the investment industry. Over time, ideas from early environmental ethicists like Aldo Leopold with his 'A Sand County Almanac' (1949) and Rachel Carson's 'Silent Spring' (1962) also contributed by igniting the environmental movement, which focused on the interconnectedness of nature and the importance of sustainable practices. These developments influenced public sentiment and the way corporations were perceived in terms of their environmental and social impact, paving the way for the ESG investment approaches that are prominent in modern markets today.