While ESG arose in the space of listed equities, private debt managers can be more effective than equity funds or other fixed income investors in getting companies to meet their ESG goals.
Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.
Check out a selection of the images from The Inside Network’s inaugural ESG event in Tasmania, which saw a host of advisers, thought leaders and consultants share ideas on all things sustainability.
It now sits aside recycling, reducing energy consumption and using biodegradable products as one of the most common methods of making a positive impact according to research from Australian Ethical and Investment Trends.
For ESG discourse to matter, it must translate into quantifiable action. That means broadening the conversation beyond the close circle of sustainability converts and having tough conversations about capital flows.
Addressing the need to separate shareholder returns from real planetary impact, Robeco created its own framework that captures a company’s contribution to mitigating climate change.
All advisers have a role to play in the transition to ESG, and it will be a spectrum of outcomes rather than a binary one. One thing we cannot forget, however, is the powerful role that capital flows can have on creating change.
The continuation of an economic world built on linear consumption, LGT Crestone’s Rachel Etherington says, will further burgeoning social and economic issues that threaten to destabilize the global system.
After benefitting from climate calm for 8,000 years the foundations are being shaken. But with over 90 per cent of the global economies committed to net-zero we have a path to crack ‘both sides of the walnut’, according to Ruffer.
Moving to a sustainable investment portfolio can reduce an individual’s carbon emissions by 90 per cent, research from Stockspot has shown.
Despite a backdrop of weaker returns and uncertainty, Australian Ethical has continued to grow via great engagement and ‘consumer love’.
Many are seeking to oversimplify ESG, which is an inherently complex part of investing, while others are overcomplicating what is really a simple consideration.
