Post by account_disabled on Feb 25, 2024 6:29:32 GMT -5
Sustainable investing has come a long way and will now be the pillar of business. To put it bluntly, channeling capital based on environmental, social and governance (ESG) factors gives better returns and business resilience in the face of future adverse environments.
But what does sustainable investment refer to? Blackrock defines it as “combining traditional security analysis with knowledge of ESG standards.” So, according to Live Wire Markets , sustainability will be the standard of investing, as ESG skeptics and advocates clash on a variety of issues every day.
In this sense, is sustainability taking its place as the next stage in the evolution of investing? If so, what will the rules surrounding it be like? BlackRock Australia specialist Steve Monnier shares his view on these concerns.
Unilever's new sustainability chief wants competitors to close the ESG gap
Sustainability will be the standard of investment
Specialists maintain that the annual letter from the CEO of BlackRock—an American investment management company—, Larry Fink, noted that sustainability would be the standard of investment and this was based on two investment convictions.
The first is that sustainable and climate risks were or Cell Phone Number List are investment risks. And second that integrated sustainability and climate portfolios tend to be more resilient and provide better risk-adjusted returns over the long term. BlackRock recognizes that the majority of its clients are long-term investors who save for goals of this type, such as retirement.
So for BlackRock, sustainability is at the center of its investment approach. Everything from how risk is managed, the creation of investment portfolios, development of sustainable solutions and the relationship with companies through the administration function.
Does ESG deliver returns?
For specialists, sustainable investment consists of betting on progress and recognizing that companies with a more sustainable business approach may be in the best position to grow.
Climate risk is such a big problem that it will require the participation of all stakeholders, from government to individuals, companies and investors. “The entire range of stakeholders has a role to play in addressing and mitigating risks.”
Monnier has also noted, previously in Shared Value , that the fact that sustainability will be the standard of investing is an evolution not a revolution. Likewise, that climate risk is a determining factor in the long-term prospects for corporations. No matter where or what type of sector or industry, everyone has a responsibility to solve their own climate challenges.
Sustainability will be the standard
ESG Standard
Likewise, according to Monnier, setting ESG standards is a priority for investors. It is about working towards a single objective, but together with other organizations to consolidate sustainable standards.
It should be noted that the United States Securities and Exchange Commission (SEC) proposed two new rules: One is to use funds with "ESG" or related terms, such as "sustainable", in the labels for commit at least 80% of assets under normal conditions to investments that meet those criteria. The second is that green funds disclose more about their annual reports.
Finally, we are at a crucial point in terms of what the next step looks like in terms of regulations and sustainability disclosures and reports continue to be the critical information for investors and other stakeholders.
But what does sustainable investment refer to? Blackrock defines it as “combining traditional security analysis with knowledge of ESG standards.” So, according to Live Wire Markets , sustainability will be the standard of investing, as ESG skeptics and advocates clash on a variety of issues every day.
In this sense, is sustainability taking its place as the next stage in the evolution of investing? If so, what will the rules surrounding it be like? BlackRock Australia specialist Steve Monnier shares his view on these concerns.
Unilever's new sustainability chief wants competitors to close the ESG gap
Sustainability will be the standard of investment
Specialists maintain that the annual letter from the CEO of BlackRock—an American investment management company—, Larry Fink, noted that sustainability would be the standard of investment and this was based on two investment convictions.
The first is that sustainable and climate risks were or Cell Phone Number List are investment risks. And second that integrated sustainability and climate portfolios tend to be more resilient and provide better risk-adjusted returns over the long term. BlackRock recognizes that the majority of its clients are long-term investors who save for goals of this type, such as retirement.
So for BlackRock, sustainability is at the center of its investment approach. Everything from how risk is managed, the creation of investment portfolios, development of sustainable solutions and the relationship with companies through the administration function.
Does ESG deliver returns?
For specialists, sustainable investment consists of betting on progress and recognizing that companies with a more sustainable business approach may be in the best position to grow.
Climate risk is such a big problem that it will require the participation of all stakeholders, from government to individuals, companies and investors. “The entire range of stakeholders has a role to play in addressing and mitigating risks.”
Monnier has also noted, previously in Shared Value , that the fact that sustainability will be the standard of investing is an evolution not a revolution. Likewise, that climate risk is a determining factor in the long-term prospects for corporations. No matter where or what type of sector or industry, everyone has a responsibility to solve their own climate challenges.
Sustainability will be the standard
ESG Standard
Likewise, according to Monnier, setting ESG standards is a priority for investors. It is about working towards a single objective, but together with other organizations to consolidate sustainable standards.
It should be noted that the United States Securities and Exchange Commission (SEC) proposed two new rules: One is to use funds with "ESG" or related terms, such as "sustainable", in the labels for commit at least 80% of assets under normal conditions to investments that meet those criteria. The second is that green funds disclose more about their annual reports.
Finally, we are at a crucial point in terms of what the next step looks like in terms of regulations and sustainability disclosures and reports continue to be the critical information for investors and other stakeholders.