ESG investing has been growing, and is here to stay

THE rise of environmental, social and governance (ESG) investing has long been dismissed by critics as a consequence of the longest bull run in history - a mere nice-to-have as opposed to a necessity.

However, if that were true, we would have expected this wave to break in the first quarter of 2020. Yet green activity across asset classes has continued to grow, and there is evidence of this in all corners of the investment world. For example, we have seen companies like Barclays and Total commit to becoming net-zero companies by 2050, ESG indexes outperforming the broader market and continued growth in sustainable-themed bonds during the first quarter, despite the significant disruption experienced by capital markets.

The pandemic has brought ESG and sustainability issues to the fore and become a strategic priority for many companies that want to outlive the upheaval. This is something that we expect to endure through the current pandemic and into the future.