Avoid the watermelons: Time to think differently about ESG

Focus on investor needs

While the focus on ESG is seemingly new, the needs of investors have not changed.

Investors have always needed to balance capital growth with income objectives, have always had varying risk appetites, and to a greater or lesser extent have always wanted to align some, if not all, of their portfolio with their values. While the investment industry has been at great pains to address the first two, the third remains elusive and subject of much criticism from those who demand greater action towards sustainability as well as those who feel all this is too ‘woke' and boards should be left to the job of running companies unhindered by non-financial targets. All the criticism...