SRI/ESG

ESG and the Problem with Business as Usual

We were very pleased to read Al Gore and David Blood’s “Manifesto for Sustainable Capitalism” in the WSJ last week.  It called for “a framework that seeks to maximize long-term economic value by reforming markets to address real needs while integrating environmental, social and governance (ESG) metrics throughout the decision-making process.”  Companies that integrate sustainability into their business models and investors who evaluate them on that basis, the manifesto claims,  are finding their profitability enhanced over the longer term.

The End of Investment?

 

I recently attended a school function and was chatting with a friend (“Pam” for the sake of this post) who is a buy-side analyst at a major asset management firm, the kind that manages hundreds of billions of pension fund assets, and 401Ks. Pam’s firm, like many mainstream asset management companies, is a signatory of the Principles for Responsible Investment (PRI). The first two Principles state: 1. We will incorporate ESG (Environmental, Social, and Governance) issues into investment analysis and decision-making processes. 2. We will be active owners and incorporate ESG issues into our ownership policies and practices.

The End of Investment?

Author: 
John Fullerton

I recently attended a school function and was chatting with a friend (“Pam” for the sake of this post) who is a buy-side analyst at a major asset management firm, the kind that manages hundreds of billions of pension fund assets, and 401Ks. Pam’s firm, like many mainstream asset management companies, is a signatory of the Principles for Responsible Investment (PRI). The first two Principles state: 1. We will incorporate ESG (Environmental, Social, and Governance) issues into investment analysis and decision-making processes. 2. We will be active owners and incorporate ESG issues into our ownership policies and practices.

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