The definition of capitalism needs modernising, including how a company treats its personnel and customers. Socially responsible companies significantly outperform the averages in job creation and ROE.
Tag Archives | ESG
Both retail and institutional investors are demanding fund managers respond to ESG issues. A new generation will insist on better standards and will not accept a compromise in returns.
Most Australians, especially millennials, expect their super funds to actively target ethical investing. The repercussions for prices and portfolio construction cannot be ignored.
Investing responsibly or ethically does not mean forsaking returns, and there are now many ways to gain exposure to shares which back an investor’s personal preferences.
For many investors, allocations to emerging markets over the years have proved disappointing. An emphasis on corporate governance and social issues can help unlock some of the potential.
There is gathering evidence that socially responsible investing (SRI) is not just about doing the right thing, but it does not detract from returns and investors who focus on it are likely to be rewarded.
General principles previously governed ethical investing, but both fund managers and clients now accept the more hard-nosed approach of eliminating certain companies from portfolios.
ESG investing is becoming more of a mainstream consideration for investors. Asset managers are facing the challenge of having to meet clients’ non-material requirements as well as their long-term financial goals.
There is a remarkable range of ‘ethical’ ETFs on the global stage, but all is not what it seems when the covers are pulled down.
Responsible investing is increasingly mainstream and relevant, but there are many words used to describe similar activities. What do they all mean and how do managers decide where to invest?
Banks are walking away from resources projects, super funds are dumping stocks based on human rights issues and climate change related shareholder resolutions are gaining wide support.
Impact investing is a growing field that is helping to address many of society’s most pressing challenges. It aims to achieve a financial return, as well as positive social, cultural or environmental impacts.
Cuffelinks reader, Josh, asks: “Can you tell me about Impact Investment, how do I do this, and where do I go?” The market is gradually unlocking the challenges and potential of this sector.
Looking at the big picture, the world will gradually move away from fossil fuels to renewable energy. Progress will be slow and timing uncertain, but investments will need to adapt to the change in energy usage.