Sustainable investments favored as economies evolve
Environmental, Social, and Governance (ESG) factors are well-known in international business. In an investment decision, ESG data provides a way to earn financial returns while participating in long-term safeguarding of the planet and having positive impact on people’s lives. The number of sustainable funds have more than tripled in the past decade. As of March 2020, there are 303 of them.
The longevity and financial returns of top sustainability performers in the 2019 Global 100 list exceeded those of other companies. That performance is likely to continue as a global pandemic impacts entire economies. Social factors like telecommuting, distributed management, and supply chain controls have been urgently needed. The strategies, their successes, and their shortfalls are reported in today’s news.
Investors are responding. In recent severely declining financial markets, funds that take ESG issues into account have retained 50% more of their value than the S&P 500 Index.