Work together for the greater good: Pushing the industry towards a more purposeful capitalism and fiduciary duty

The importance of being responsible investors

Over the past decade, ESG investing has become most important trend in the asset management industry. With the likelihood of achieving the 2015 Paris Agreement target to limit global warming looking extremely challenging, asset managers have a tremendous opportunity to reshape their role and reputation.

Collectively, we have the power to play our part in achieving the target by allocating capital to sustainable businesses and encouraging change for the benefit of society. Classic theory US economist Milton Friedman, who won the 1976 Nobel Memorial Prize in Economic Sciences, devised the shareholder maximisation philosophy and believed wage and price controls will harm the economy. But does this still work in today's climate-challenged world? I would argue his analysis has proved harmful for wider society and, in fact, for shareholders. Classical economic theory is ill-equipped t...