Environmental, Social and Governance (ESG) Investing has grown rapidly over the past decade, and the amount of professionally managed portfolios that have integrated key elements of ESG assessments exceeds USD 17.5 trillion globally, by some measures. Also, the growth of ESG-related traded investment products available to institutional and retail investors exceeds USD 1 trillion and continues to grow quickly across major financial markets.
The growing investor interest in ESG factors reflects the view that environmental, social and corporate governance issues – including risks and opportunities — can affect the long-term performance of issuers and should therefore be given appropriate consideration in investment decisions. While definitions differ regarding the form of consideration of ESG risks, broadly speaking ESG investing is an approach that seeks to incorporate environmental, social and governance factors into asset allocation and risk decisions, so as to generate sustainable, long-term financial returns.
Credited with revolutionising the American transportation industry in the 20th century, once remarked that “Business must be run at a profit, else it will die. But when anyone attempts to run a business solely for profit and thinks not at all the service to the community, then also the business must die, for it no longer has a reason for existence”.
Nearly a hundred years since, these words of wisdom remain true. Perhaps, even more so now than ever. Indeed, we have witnessed time and again, episodes of excessiveness, and the sole and unchecked pursuit of profits, that have led to global financial crises. The theme of this conference, “ESG & VBI – Beyond Profit”, is therefore a fitting reminder of the role of ESG, in helping build a more resilient and sustainable future.
What is ESG Principle?
At FMC. We want to listen to your ESG story and aspirations for future relevance and market expansion. Trainings, advisory and ESG reports are our area of interest. We look forward to hear your aspiration? Reach us at email@example.com