FTfm: Responsible Investing

Once the preserve of specialised fund managers or charity investors, responsible investing has lost its ‘tree-hugger’ image. Explicit consideration of environmental, social and governance issues has taken centre stage for asset managers as a key risk management tool

© Cat O’Neil

Asia plays catchup with Europe and US

Concerns remain over state oversight in China

Managers bet on a surge in demand for ESG products

Some rebrand funds but other investors wait on the sidelines

Proxy advisers feel regulatory heat over transparency

Shareholder advisory groups are reviewing their business practices following increased legal scrutiny of how they make recommendations

Reputations at risk for investors as biodiversity concerns mount

Institutions are paying more attention to preserving natural habitats in their investment decisions

UN SDG influence ratchets up among asset managers

Asset managers are increasingly shaping investment strategies around UN ESG targets, but there are concerns around execution

Insurers hesitant to take the plunge with sustainable investment

Investment portfolios are being adapted to limit climate change risk but concerns remain about the potential impact on returns

Investors turn up the heat on governments

Focus is switching from corporate to sovereign debt issuers’ attention to ESG