Even if critics have smiled at ESG investments rather than taking them seriously, they have been taught a better lesson after the corona crisis.
Investment professional Mitch Reznick observes the development of the boom in sustainable financial investments, which have always been dismissed as “nice-to-have”, but nobody has really considered them necessary. The investment strategist at Federated Hermes is convinced that sustainable investment will continue to grow across all asset classes. A prime example is companies such as Barclays and Total, which have even committed to becoming net zero issuers by 2050. Resistant to the recent turbulence, the volume of green or sustainable bonds on the capital markets in the first quarter declined only slightly in comparison.
We are witnessing a serious rethink as a result of the Covid 19 pandemic, with companies and investors around the world recognising the need to prepare for future global threats and to build up some degree of protection. ESG practices have become more important than ever, and the changes needed will create a fairer and more sustainable society.
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