Gustavo Bernal Torres
Why ESG Investing is Becoming the Norm
A lot of investors say they want to put their money into “ESG” funds. But unless you actively opt for a “sin” fund jammed full of companies behaving badly, that’s probably what you’re getting anyway, says Merryn Somerset Webb.
The problem with ESG investing is that it is hard work – you have to do actual research if you want to find a fund to suit your preferences. That might be one reason ESG action doesn’t seem to match ESG survey-answering.
Good news then: it might not be necessary for you to do anything at all. If your ESG feelings are of only average intensity it might already have been done for you. In 2019, 39% of investing institutions said they did not implement specific ESG policies. In 2021, only 28% said the same, says the Natixis report. So, more than 70% of institutions are now ESG a-go-go. The number saying they integrate it into their processes was up from 19% to 48%, with various impact/active ownership/best in class strategies making up the rest (ESG is marketing buzzword heaven).