Many responsible investment funds struggled in 2022 due to low exposure to gas and oil and a quality bias, but says Claudia Wearmouth, the investment case remains intact and responsible investing is now mainstream investing.
Responsible investing is mainstream investing
Despite these headwinds, RI remains very popular – which brings me on to my first thought for 2023. Environmental, social, governance (ESG); sustainable; socially responsible investment (SRI); impact … all these terms and types of investing that sit under the RI umbrella are everywhere now. Indeed, Bloomberg has suggested that ESG assets could exceed $50 trillion by 2025. It feels like every corner of the investment industry has woken up and wants to better understand the idea of investing for people
and the planet alongside financial returns. For us the focus is on quality and ensuring we continue to evolve our approach to ESG
integration – we continue to review ESG data sources and develop ESG analytical tools to help our investment teams extract high quality information to best inform investment decisions – this will be a key focus for us in 2023 and beyond.