ESG leads to better investment decisions
Taking environmental, social and governance (ESG) factors into account leads to a more comprehensive analyses and better-informed investment decisions, according to a report by Colonial First State Global Asset Management (CFSGAM).
The ‘Responsible Investment and Stewardship Report’, which surveyed CFSGAM’s staff on their investment beliefs relating to sustainability and ESG factors, found that 80 per cent believed that considering these issues might help to conduct more complete analyses and lead to better-informed investment decisions.
Additionally, nine out of 10 employees believed that effective stewardship can positively influence company behaviour and returns.
CFSGAM’s chief executive, Mark Lazberger, stressed that since the company put responsible investment and stewardship at the heart of its business, it saw staff across the organisation was highly engaged as it saw it as intrinsic to the firm’s business culture and long-term success.
CFSGAM’s head of responsible investment Asia Pacific, Pablo Berrutti, said: “Our focus in the past year had been to broaden the discussion around investment performance with a view to developing models that are long-term, socially connected, active and sustainable”.
The report, where the first phase of the review was produced with the support of the Willis Towers Watson Thinking Ahead Institute, also disclosed the level of diversity within CFSGAM’s global investment teams by gender, age and length of employment.
“Promoting diversity is not a quick fix, it is a challenge and we are committed to stay the course,” Lazberger said.
AUTHOR
Oksana Patron
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
