First Steps to ESG Integration
More than a decade from a very hard financial crisis, largely created as we know it by exclusive short-term focus on earnings and profits, we are now witnessing a radical paradigm shift in the world of investing. Starting with the asset owners at the top of the investment chain, there is unanimous consensus that certain long-term risks and considerations can no longer be ignored on the understanding that consideration of these additional risks will prevent future economic and financial crisis. An increasing number of managers are turning to a different vision for their investment approach accordingly, geared towards long-term value creation and return generation, to meet the demands of asset owners.
In this article we look at the first steps involved in ESG integration and how managers should successfully navigate this generational change in investing.