Many investors are keen to understand how companies are improving their governance standards, in order to avoid those whose practices don’t stack up. There is also growing evidence of a positive link between good ESG practice and company performance, perhaps in no small part due to the extra analysis which takes place into ESG funds, and the work being taken to identify long-term trends.
Our recent webinar explored the increasing relevance of ESG investing, how it is changing the way companies operate and how you can include ESG as part of your own investment strategy.
Our keynote speaker was Mike Appleby, Investment Manager at Liontrust, who tackled a range of areas which are important when considering an ESG investment strategy.
Mike explained that ESG investing has become more relevant following the increased awareness of continued inequality in our society and the impact we are having on our environment. As a result, there is growing interest in funds which avoid controversial sectors, embrace sustainable themes, such as renewable energy, and ensure that they are acting responsibly. Such funds are also likely to be more resilient to future changes given they have already made, or are in the process of making, the changes needed as regulation tightens and attitudes evolve.
Mike also provided an overview of some of the funds which may be worth considering as part of an ESG investment strategy. He also discussed how the UN Sustainable Development Goals are being used as a tool to help rationalise the evaluation process when selecting and assessing funds.
In the light of Covid-19, it is likely that the trend in investing in companies which are aimed at making the economy cleaner, safer and healthier is only set to grow in importance. To discuss ESG investing, or any other element of your portfolio strategy, please contact your nearest office.
Charlie Buxton, Portfolio Manager