brief INSIGHT by Aberdeen Standard Investments

| The world faces three significant challenges: climate change; rising social inequality; and the unprecedented rate at which we are consuming resources.

Most countries have acknowledged the need for action. The United Nations’ Sustainable Development Goals (SDGs), established in 2015, are likely to guide public policy and private-sector capital allocation until at least 2030. Estimates of the investment needed range from some US$5 trillion to US$7 trillion per year. Global asset managers – with more than US$80 trillion of assets under management – have an important role to play.

Many asset managers have committed to the Principles for Responsible Investment (PRI), another UN-supported initiative. The six PRI were designed to promote responsible investment as a way of enhancing returns and better manage risk. They acknowledge the growing relevance of environmental, social and governance (ESG) issues to investment practices.

Attitudes within the investment and corporate worlds are changing. Responsible investing is no longer something that is just ‘nice to have’. Instead, ESG analysis needs to be an integral part of all investment decisions. Asset owners are embracing sustainable strategies, companies are under pressure to change, and asset managers are heeding the call.

 

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Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden: Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL. Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated by the Financial Conduct Authority in the UK.

Switzerland: Aberdeen Standard Investments (Switzerland) AG (“ASIS”). Registered in Switzerland under company no. CHE-114.943.983.

Registered Office: Schweizergasse 14, 8001 Zurich.

 

All opinions expressed are those of the author. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.