What clients want to know about ESG
Clients often ask about the definitions of ESG terms, the performance of ESG investments and how they can have an impact on issues they care about, said Jenifer Cannon of Impax Asset Management.
Clients often ask about the definitions of ESG terms, the performance of ESG investments and how they can have an impact on issues they care about, said Jenifer Cannon of Impax Asset Management.
The SEC has made six announcements on ESG in just the past month, George Moriarty notes. Financial advisers should pay particular attention to the agency’s plan to examine disclosures around sustainable investment products.
A survey of global investors shows that three-quarters plan to allocate more to ETFs this year, in part to put more money into funds that factor in ESG, and that they’re also very interested in active ETFs, George Moriarty reports.
Regulation of ESG rating agencies likely coming in Europe and eventually the US will follow suit, says Remy Briand, head of ESG for MSCI.
Recent SEC announcements on ESG topics show this will be a “front-burner” item for the agency in coming years, says Bob Smith of Sage Advisory; he adds that that’s hardly surprising given the amount of money flowing into sustainable investments.
With the Biden administration ramping up the focus on climate change, ESG investing is expected to see another wave of growth.
ESG investors focus on exactly what is in their portfolios, as well as who is managing their investment, says Tim Coffin, director of sustainability at Breckinridge Capital Advisors.
Trillium CEO Matt Patsky, who said his interest in ESG investing started at age 11, believes the pandemic and BLM have worked to push firms to think more about DEI, and labor issues.
In this episode, Christine Shaw speaks with Kristin Hull, founder, CEO and CIO of Nia Impact Capital. Kristin shares her experience with impact investing, and how her values are reflected in her company’s practices.
Conventional investment firms finally recognized in 2020 that they need to have ESG offerings.
Danielle Burns of CNote reflects on the Capitol riots and discusses the diversity, equity and inclusion (DEI) takeaways for the investing and capital-raising industries.
Emily Lawrence, director of sustainable investing at Northern Trust Asset Management, recommends advisers prepare for more ESG questions from clients and DC plan sponsors in 2021.