This chapter conducts an empirical analysis focusing on the heterogeneity of institutional investors after reviewing the literature on ESG and institutional investors. The analysis considers ESG activities as a form of extended governance that is responsible for all stakeholders. Empirical evidence shows that foreign and long-term institutional investors promote long-term tangible and intangible investments in companies that engage in ESG activities, leading to increased innovation in the long run. These findings contradict the popular view that foreign investors tend to pursue short-term outcomes. It also reveals that differences in CO2 emission standards, which are of high interest to institutional investors, have an impact on the ownership of companies. It is important to consider the characteristics and country of origin of institutional investors when analyzing companies’ ESG. The comment by Kazuhiko Ohashi, “On the Relationship Between Investor and Corporate Behaviors Regarding ESG,” discusses various aspects and channels for ESG investment, including different forms of companies such as public and private companies. He also examines the so-called impact investing, which pursues not only financial returns but also environmental and social impact.