Recent growth in ESG fund assets under management shows that people are convinced of the necessity and value of investing sustainably. This commitment will come with significantly higher expectations on the part of investors.
As the world recovers from the global pandemic, the private-lending industry has an opportunity to position itself as a strong partner for post-crisis long-term growth. But sustainability needs to be at the heart of private lenders’ approach.
As the world battles the Covid-19 pandemic, responsible investors can help make the economic recovery sustainable and inclusive by engaging with the right stakeholders. A PRI working group has developed recommendations for a policy-engagement framework to help guide the investment community’s actions. Here are highlights of the group’s findings.
The United Nations Sustainable Development Goals (SDGs) reflect a global consensus on the most urgent environmental and societal issues. A new crop of investments built around the SDGs are helping investors to direct capital into potential growth companies, while also addressing the biggest issues facing the planet.
For a long time ‘investing in a good cause’ was not regarded as an investment activity in the strict financial sense, but was assigned to the area of charity. The reason for this is the lack of an intention to generate returns. But any tension between good purpose and yield is only illusory and impact investments help bridge the gap.
The creditworthiness of an emerging market country is dependent on many factors. Typically, investors focus on a range of macroeconomic variables, such as fiscal deficits, debt levels, or the stock of foreign exchange reserves.
Higher yield potential and added diversification aren’t the only qualities attracting fixed-income investors to Asia. The region’s bond markets are large and growing, and reform-minded governments are providing the necessary policy support to maintain growth.
The world is changing rapidly as disruption impacts every sector. We believe an active management approach is essential to make the most of the opportunities, while managing the threats inherent in this technological and social shift.