ESG – where environmental, social and governance issues are factored into investment decisions — had long been viewed as niche, but is it now becoming part of the mainstream?
ESG funds outperformed traditional funds in 2020 and by the end of the year, the total assets in sustainable funds hit a record of almost $1.7tn, up 50 per cent.
Addressing material ESG issues is increasingly being seen as good business practice and essential to a company’s long-term financial performance, so are ESG investments changing the shape of corporate behaviour or are these ratings simply being used to “greenwash” the reputations of major polluters?
Climate transition presents an historic investment opportunity. Instead of saying ‘how are we going to pay for this’ – should we be asking ‘what’s the price for not changing now?
How can ESG data be simplified and strengthened to make measurement more meaningful? And how can we prove
that ethical equals effective in terms of investment?