To help ensure that companies exert a positive impact on the world, including the bottom line, Gary Greenberg, Head of Emerging Markets, and Elena Tedesco, Co-Portfolio Manager, ESG Strategies, at Hermes Investment Management, believe that investors need to do more than assess environmental, social and governance (ESG) risks. They must engage.
“Companies do not exist in isolation: they use resources from the commons, employ labour and attract customers from towns and cities, and are required to operate under the laws of the land. They influence the lives of far more people than shareholders alone, but unfortunately plenty of businesses act to the detriment of many – including, in the long run, themselves and their investors.”
Back in black: The energy sector’s cash-flow focus is good for credit
Economic outlook - looking into 2018