ESG

For much of the investment industry, committing to ESG (Environmental, Social and Governance) has become a recently-adopted core belief. A concept that was brought into focus  15 years ago at the 2005 Who Cares Wins conference, which examined its role in asset management and financial research, ESG has now become entrenched across the industry. Although there are still widely varying degrees of commitment to ESG, investing today in assets that adhere to these principles comfortably exceeds $US30 trillion – and is growing rapidly.

Amongst the headline noise on virus affected financial conditions, it is surprising that ESG seems to have gained an even stronger foothold.

I recently returned from a research trip to China and was struck by how seriously environmental issues are now being taken by government and town planners. As China continues to develop, environmental issues are increasingly front and centre in what is described in the country as a “war” against pollution.

For fixed-income investors, understanding environmental, social and governance (ESG) factors – as they are financially material to performance – has proven to be critical in assessing an issuer’s fundamental quality.

One of the largest and oldest ESG-specialist fund managers in the world, Calvert Research and Management, has entered the Australian market following its purchase last year by Eaton Vance. Calvert provides a different perspective on the topic than most other managers. Anthony Eames, the vice president and director of the main ‘Responsible Investment Strategy’ at…

Vontobel Asset Management, the big Swiss-based multi-strategy manager, which has been managing money on a sustainable basis since 1994, believes the corner has finally been turned. Investors – at least the professionals – now know that ESG management enhances returns. Zurich-based Roger Merz, Vontobel managing director and head of portfolio management, said on a recent…

A strong focus on governance standards is the key to successful investing in emerging markets (EM), according to the principals of a new specialist EM investment manager, Remerga. Remerga’s first fund, the ‘Emerging Markets Sustainable Leaders Fund’, offers access to a concentrated portfolio of stocks in across the emerging markets. Remerga makes its stock selection…