Gustavo Bernal Torres
CFA's Future of Sustainability in Investment Management
In a quite comprehensive report, CFA tries to answer what is the purpose of the investment management profession, how does it contribute to the greater good of society, and what is its role in sustainability-
Although the future of sustainable investing includes many unknowns, we advance three important tenets where sustainable investing goes further than its forerunners:
It is additive to investment theory and does not mean a rejection of foundational concepts.
It develops deeper insights about how value will be created going forward using environmental, social, and governance (ESG) considerations.
It considers many stakeholders.
In many ways, we are moving from sustainable investing as a good idea to a reality that has implications for all investment portfolios. There is a growing recognition that some ESG factors are economically material, especially in the long term, and it is, therefore, important to integrate material ESG factors in investment decisions.