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I first met Moira Hutchinson in 1987 when I was working on the first of my series of books on responsible investment. She was generous with her time and provided a wealth of insight into “ethicalinvesting,” as responsible investing was known then. .
Pacifists may choose not to invest in companies that manufacture weapons. Environmentalists may choose to invest in companies that produce durable products from natural materials. Terms like sustainableinvesting, impact investing, and ethicalinvesting were used to describe this activity. In the U.S.,
Copenhagen-based Kristensen will account for regional variations in effort to deepen direct institutional relationships with sustainability-focused manager. The latter can explain different attitudes on key sustainableinvestment issues, such as allocations to armaments and energy, shaped both by past and more recent events.
They can also lead in the adoption of best practices, such as governance, transparency and ethicalinvestment. However, investing in social sustainability has several challenges, including difficult geopolitical environment in many countries, as well as a perceived lower rate of return and higher risk.
As Impax CEO Ian Simm said recently, attempts to define ESG investing have always been hard due to its dual heritage across ethicalinvesting and risk management. The task has become harder still when sustainable, green and ESG vehicles are now ubiquitous and marketed as achieving almost any objective and solving any problem.
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