Getting real about ESG

THE war in Ukraine, rising inflation and dramatically higher fossil fuel prices have made many investors question the underlying values and financial performance of ESG (environmental, social and governance) investing. Indeed, the very idea of investing sustainably has come in for criticism in many parts of the world.

But the evidence of large-scale natural disasters linked to climate change won’t go away, and the energy crisis has refocused minds on the need to think for the long term – and may even speed up investment in renewables.

In many markets, regulation targeting sustainability is already coming into force or is on the horizon.