According to the Global Sustainable Investment Alliance, over $30.7 trillion of assets globally in 2018 were invested using environmental, social or governance (ESG) criteria, a 34 per cent increase from 2016.
Over the past couple of decades we have witnessed the introduction of a dramatic number of laws, policies, targets and initiatives across the globe which are imprinting environmental and social considerations into the rules that govern our financial syste
Transnational initiatives have also been put forward recently in an effort to both harmonise and clarify the nature, breadth and scope of ESG principles and assist multi-governmental efforts aiming to apply them domestically in a coherent manner.
The fund selector referred to the rise of passive and factor products, increased cost transparency demands and constant lowering of management fees as some of the biggest obstacles the industry is facing.
Fund managers at HSBC Global Asset Management can accept or ignore ESG red flags, but they can’t deny the warnings, according to the firm’s responsible investment specialist.
Lord Sales noted in his speech that, based on the current law, "there is much force in the view that directors may and, increasingly, must take into account and accord significant weight to climate change in their decision-making".