Equity as an asset class has a long history rooted in sustainability and shareholder engagement. Even in the 19th century, equity investors used voting and engagement to influence how companies behave. Efficient use of capital, dividend policy, and strategy were typically on the agenda.

In the 1970s, equity investors started considering ethical values, triggered by global abhorrence of South Africa’s apartheid regime. In the nineties, initial ethical screenings expanded to embed environmental, social and governance factors in capital market decisions. Through the years, sustainable investing through equities has continuously evolved and increased in complexity.

Equity as an asset class has a long history rooted in sustainability and shareholder engagement. Even in the 19th century, equity investors used voting and engagement to influence how companies behave. Efficient use of capital, dividend policy, and strategy were typically on the agenda.

A future-proof equity portfolio should avoid financial risk from holding companies that do not adapt to the sustainable transition or that could harm their surroundings
In the 1970s, equity investors started considering ethical values, triggered by global abhorrence of South Africa’s apartheid regime. In the nineties, initial ethical screenings expanded to embed environmental, social and governance factors in capital market decisions. Through the years, sustainable investing through equities has continuously evolved and increased in complexity.

In the last decade, sustainable investors have increasingly started to focus on companies’ real-world sustainability impact. Sustainable investors want to know how companies treat their employees, manage their supply chain, and lower their carbon emissions. Sustainable investing in equities now encompasses a forward-looking assessment of companies, and the real-world impact of their economic activities.

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