Why should investors care about ESG?
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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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Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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8 minute watch