The next stage of ESG evolution in the pension landscape

By Investment Institute

A juggernaut that’s losing momentum or just refiring its engine?

This question on ESG investing has come to the fore due to a confluence of exceptional events in 2022.

After meeting investors’ return expectations since the 2015 Paris Agreement, last year’s savage bear market hit a broad range of investment strategies, no matter their intrinsic merits. ESG was no exception.

The episode showed that ESG investments are exposed to periodic setbacks due to a larger dynamic that has little to do with ESG per se.

The fact remains that ESG investing has successfully challenged all long-held paradigms centred on financial factors to the exclusion of environmental, social and governance factors. These are now seen as vital in tackling a whole host of negative externalities that directly impact on corporate profitability.

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