ESG Outlook: Key Trends Fueling Momentum

By Guillaume Mascotto - March 2019

Milestones in 2018

We saw significant momentum in the ESG space during 2018. Asset managers launched new or repurposed strategies ranging from those designed to integrate environmental, social and governance issues more broadly into the investment process to screening strategies that exclude so-called “vice” industries (e.g., firearms, coal mining) and overweight “good” industries (e.g., renewable energy, clean tech) in client portfolios. We also noted a variety of new investment vehicles, such as ETFs and impact-related thematic products.

Globally, asset owners have increased their focus on allocating capital toward ESG-related investments. Growing concern for stranded fossil fuel assets and water stress generated particular interest in investment solutions that address climate change risks.

Issuers have also started placing more emphasis on ESG disclosure. They have stepped up organizational transparency around ESG-related risk management practices and business ethics controls to address growing investor concerns, especially after a series of scandals resulted in adverse impacts on market valuations and credit spreads.

Guillaume Mascotto
Vice President
Head of ESG and Investment Stewardship

ESG Outlook: Key Trends Fueling Momentum

Notes from the ESG Desk

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