ESG in income: sustainability beyond shares
ESG investing is not just for equities. Investors are now applying sustainable thinking to all asset classes.
What’s this all about?
Historically, the case for ESG analysis centred on listed equity investments. Equity investors have since developed ever-more focused objectives and sophisticated techniques on assessing ESG characteristics and engaging companies – such as those practiced by Hamish Galpin and Will Pomroy of the Hermes SDG Engagement Equity Fund. But investors in other asset classes are making progress, too.
Fixed income is increasingly seen as fertile ground for ESG-focused investors – particularly in emerging markets, as Nachu Chockalingam and Andrey Kuznetsov, two Portfolio Managers specialising in this sector, explain.
Responsible investment practices are also evolving elsewhere, with our real estate team advancing its ability to implement meaningful place-making projects to create community-based, commercial centres within cities.
What’s the impact on investors?
ESG integration can deliver strong returns and a better world no matter the asset class – from equities to fixed income and real estate. Further, it can lay the foundation for positive outcomes experienced by a broad range of stakeholders, from companies, employees and investors to communities and the environment.
“Seen more broadly, responsible property investment creates tangible social and environmental benefits for society in the form of healthier, happier and more prosperous communities that benefit from job creation, skills development and attractive amenities and public realm.”
- Tatiana Bosteels, RPI & Sustainability