The road to a clearer solution: Which ESG principles should matter to fund selectors?

Myriad sustainable investing guidelines cause confusion

Frameworks can set out the ESG direction of a company, but ensuring they are integrated is paramount. As the swing towards sustainable investing continues, the debate surrounding the frameworks, guidelines and legislation used to shape the future of investing is quickly becoming a crucial topic of consideration for fund selectors.

For Leslie Gent, head of responsible investing at Coutts, the mindset of sustainability is manifested across all investment and fund-related decisions. She said the single most important element is "integration", meaning the consideration of ESG is "part of the whole investment decision-making process for all funds, regardless of whether they are marketed as ESG funds". This thinking is driven by fund managers, who "recognise and incorporate" the risks and opportunities that the application of sustainable-centric frameworks offers. "We want our fund managers to understand that clim...