Alliance Trust's Baker: You are not improving society just by not holding something

Pushing for greater ESG integration in investment

Engagement is required to create positive change for society, according to Craig Baker, global CIO for Willis Towers Watson and head of Alliance Trust's investment committee, who said ESG is best fully integrated into the investment process rather than utilising "easy" exclusions.

"You are not improving things for society just by not holding something," Baker said. "Tobacco is the classic example: by not holding a tobacco company, the company still exists but you have another shareholder that may not care, is still investing in it and nothing changes. "If, instead, you are actually holding a tobacco company and engaging with them and getting them to change away from traditional tobacco products to things that are less harmful to the end customer, you are actually making a positive impact. "Likewise, with an energy company that is moving away from fossil fuel...