Alison Porter, portfolio manager in the UK-based Global Technology Team explains the significance of ESG when it comes to investing in tech stocks and how the team proactively engages and manages their portfolios with this in mind.
- For the team, environmental, social and governance (ESG) considerations are not only about responsible investing but also key to identifying opportunities and generating returns for clients.
- Technology companies are providing solutions to many key challenges facing the world today such as the ageing population and climate change - from artificial intelligence in hospitals to ride sharing, and electric or autonomous vehicles. ESG factors are crucial to the team’s decisions to invest in companies that can execute in line with these key solutions.
- Responsible behaviour is important to sustain and trust in new technologies that are very disruptive. Being proactive on ESG factors helps sustain the virtuous cycle for technology and the potential for delivering attractive returns to investors over the longer term.