Although interest in ESG (Environmental, Social & Governance), Sustainable and Impact Investing is growing, there is still some misunderstanding over what it is – and, in particular, how it is not the same as ‘ethical investing’.
I was invited to speak at the annual Lipper Fund Selector Forum at Canary Wharf this year. In this short video, I explain the key difference between Ethical Investment and ESG, exploring how and why sustainable and impact investing has grown and why ESG is a crucial analytical tool that is part of the qualitative analysis that should be undertaken by all fund managers in understanding and managing portfolio risk.
In this video I also discuss ‘greenwashing’ and why it’s such a big risk to all portfolios. At Ayres Punchard, we believe regulation goes far beyond national frameworks, extending out globally through the United Nations Sustainable Development Goals, driven by the climate emergency and an array of other global challenges that (together with Government action) require solutions which will have to be financed through investment.