Analysing stocks with an ESG lens

HOW can we transition quickly to a low carbon economy? Will there be sufficient healthy food to feed nine billion people? Are supply chains respecting human rights and reducing inequalities? These are some of the many questions that companies need to address in order to adapt to a changing world and ensure their long-term prosperity.

And for investors, the opportunity is to direct capital towards those companies that are actively managing environmental, social and governance (ESG) risks and opportunities to drive sustainable (in the broadest sense) growth and returns.

Sustainable investing has grown significantly over the past decade due to initiatives such as the UN Principles for Responsible Investment, which now boasts over 1,500 signatories who together manage and own US$62 trillion.