Why should investors care about ESG?
8 minute watch
In the following video update recorded at a recent Janus Henderson Fixed Income Forum, Paul LaCoursiere, who joined as Head of ESG Investments in January 2021, examines three key reasons why investors should care about environmental, social and governance (ESG) factors and explores an important challenge faced by the investment industry.
Key takeaways
- A positive relationship exists between ESG-related performance and investment performance that is statistically significant, and is gradually increasing in magnitude over time.
- ESG considerations are changing the markets we invest in and are now being reflected in asset valuations.
- Asset owners and asset managers are increasingly subject to disclosure and restriction regulation for the mandates they are responsible for or operate.
- Product design is arguably a key challenge faced by the investment industry, with a natural ‘tension’ between regulatory developments and financial market requirements.
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