Your investment team relies on fundamental research and a long-term perspective to select organizations that can produce sustainable returns throughout an economic cycle, integrating active ownership practices into investment decisions is one of the most difficult features of a fully integrated investment process to get right. And also, from more rigorous integration of social issues into the investment process to the strategic case for sustainable investments.
ESG issues are often reflected in regulation associated with particular stakeholder issues, or may pose operational, financial, strategic, reputational or systematic risks to economies, industry sectors, organizations or physical assets, sustainable investors believe that sustainability can have a material impact on organizations performance. Compared to, while sustainable investing has become a more mainstream concept, investors in the sector face challenges.
Asset owners and financial intermediaries increasingly seek to finance development that meets present needs without harming future generations, through your business relationships you play a role in developing and promoting sustainable products and businesses across the globe. In summary, investment process is a vital component in delivering long-term value to your investors.
Potential comes from thoughtful integration of fundamental, valuation, and sustainability analysis, it also helps you identify organizations that are generating profits at the expense of other stakeholders–a business strategy that will, correspondingly, investors are increasingly applying akin non-financial factors as part of analysis process to identify material risks and growth opportunities.
You are long term investors and that means knowing and understanding the environmental, social and governance factors affecting the prospects of the investments that you make on behalf of organizations.
Want to check how your ESG Investing Processes are performing? You don’t know what you don’t know. Find out with our ESG Investing Self Assessment Toolkit: