ESG investing requires true transparency and recognition that it's not a one-size-fits-all approach

Published Thu, Feb 18, 2021 · 05:50 AM

IN recent years, the investment industry has undergone a fundamental change in the way it approaches responsible investment. What is needed now is true transparency and a recognition that environmental, social and governance-focused investments (ESG funds) are not a homogeneous product.

Only a few years ago, responsible investment was considered a niche activity, a European phenomenon. Some argued it undermined fiduciary duty. Many were convinced it inherently resulted in lower returns.

How times have changed. Investors around the world - institutional and individual - are now concerned about issues that go beyond the balance sheet. The current envir…