Confronting hard truths, and exploring ideas for resolution, around issues hindering the adoption of ESG-led investment strategies.

Wherever you look in investment circles, from active or passive management, Environmental, Social, and Governance (ESG) factors appear to be growing in consideration.

Several definitions loosely outline what ESG’s inherently “good” factors stand for, but one most accurately depicts their pragmatic value. According to the FT Lexicon, ESG is a term used by investors to evaluate corporate behaviour. They try to determine the future financial performance of companies based on a subset of non-financial performance indicators, which include sustainable, ethical, and corporate governance issues.

If institutional stewards of capital would only look beyond the greenwashing, they would find the tenets of ESG opening a rich seam of opportunity to tap into more sustainable models of portfolio growth.