Profit vs purpose: Do investors need to sacrifice returns to reward strong ESG performers?

Cannot rely on ratings

clock • 4 min read

The primary goal of any company is to maximise financial returns for its shareholders.

The view that this cannot be achieved whilst also taking action to excel from an environmental, social and governance perspective has been hotly contested as ESG has risen up the agenda. As we mark the end of COP27, it is time to take stock of the state of ESG investment in 2022, debunking areas of complexity and confusion and plotting a path for meaningful impact in the future.  ESMA to introduce rules on ESG fund names to tackle greenwashing This dichotomy between profit and purpose has not been helped by the complexity of the space - there is much confusion around what ESG inves...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

Parmenion's Meera Hearnden: A call to action on DE&I
ESG

Parmenion's Meera Hearnden: A call to action on DE&I

'Urgency could not be more clear'

Meera Hearnden
clock 04 March 2025 • 4 min read
Fidelity plans to adopt 'Sustainability Mixed Goals' label for three UK funds
ESG

Fidelity plans to adopt 'Sustainability Mixed Goals' label for three UK funds

UK-domiciled multi-asset strategies

Sorin Dojan
clock 03 March 2025 • 1 min read
WHEB AM's Seb Beloe: Tackling climate change should not be a gimmick
ESG

WHEB AM's Seb Beloe: Tackling climate change should not be a gimmick

'Already impacting asset valuations'

Seb Beloe
clock 27 February 2025 • 2 min read
Trustpilot