Don’t invest through the rear-view mirror: Schroders sustainable investment head

ANDY Howard is riled up that there are still doubts about the investment case for environmental, social and governance (ESG) funds.

The relevance of ESG investment strategies is no longer up for debate, said the global head of sustainable investment at Schroders. Amid fundamental shifts in regulator focus, business and financial drivers and client interest, fund managers need to pay heed to the changes coming up the road.

“When the road is straight, if you’re driving your car, you can drive by looking at the rear-view mirror, because the rear-view mirror is fine on a straight road,” Howard said. “But when the road starts to turn, driving through the rear-view mirror means you crash quite quickly… If you carry on assuming that the companies that have succeeded in the past will be the winners of the future, then you crash.”