The perception was ESG investing was a style for those investors who wanted to ‘do the right thing’ for moral reasons, and were willing to accept a lower return by reducing their set of investment opportunities. Roll the clock forward 10 years, and this view has been completely flipped on its head.
ESG investing has grown rapidly and become a completely mainstream approach, with investors now asking, “Why would you invest in a company that is less likely to survive in the long-term due to its unsustainable environmental, social or governance practices”?