Globally, companies and institutional holders responsible for trillions of dollars of client funds are waking up to a new reality: acting and investing responsibly should be an integral part of an organisation’s overall risk management.
Until recently, the prevailing mindset was that ‘doing the right thing’ on environmental, social and governance (ESG) issues was a luxury afforded to boutique investment houses, or ethical funds with a clear client mandate.
Now, investment managers argue ESG considerations such as climate change or exploitative social practices are risks that should be formally taken into account, along with better-known ones such as commodity, currency or geographic exposures.
“We are the custodians of other people’s capital and…
