In 2019 climate change and sustainability became two of the most important boardroom opportunities and challenges facing businesses. The next decade will see the climate change become a major focus for businesses, as investor preferences change and pressure from regulators for businesses to disclose more information on how they are impacting the climate agenda
As business leaders contemplate their response, this paper focuses on why Environmental Social and Governance (ESG) should be a key focus for the asset management industry. Download full document here.
The climate crisis and its impact on financial markets
As with any era of disruption, climate change is creating and will continue to
create risks and drive opportunities for asset managers. Climate change is happening, how severe the impact depends on action now. Our environment is at risk, the risk of global warming and the change to our climate will also have social and economic effects across the world Learn more
Growth of Sustainability movement
At the World Economic Forum (WEF) in 2020 the theme was focused on “Stakeholders for a Cohesive and Sustainable World”. For the first time climate and environmental risks are listed as the top five global risk areas, edging out
other significant issues such as regulation, reputational and cyber risk. Learn more
Market Opportunity
Previously defining ESG has not been an easy task because there is no standardisation or single definition of ESG. Even the terminology is often confusing, with ESG used interchangeably with responsible and sustainable investing. However sustainable investing and responsible investing, are the same thing, it is the process of incorporating ESG factors into investment decisions and incorporating ESG criteria into all portfolio management processes. Learn more.
Looking towards the future
For the asset management sector the goal must be not only that all investors can access sustainable products and services on demand but that ESG factors are included in their corporate, investment and business ambitions for the future. Asset managers are at a point of historic change, a significant shift in thinking is needed by all participants across the whole investment chain, as the results will affect the risks, returns and value for investors. The global impact of which will last for generations to come. Learn more