SUSTAINABLE FINANCE
“ We also know that a successful transition to a low-carbon economy can drive economic growth, lower future energy bills, create jobs, reduce pollution and help drive technology innovation.”
This integration is not just about risk avoidance; it is also about capturing new opportunities. Companies leading in environmental innovation – such as Tesla in electric vehicles and Ørsted in renewable energy – have delivered substantial returns for investors.
The‘ S’ of ESG While environmental issues often dominate the ESG conversation, social factors are equally vital. These include labour practices, human rights, diversity and inclusion, product safety and community engagement.
Poor social performance can lead to reputational damage, regulatory fines and even systemic risks that affect entire markets.
The importance of governance in asset management Governance has always been central to asset management, but within sustainable finance its scope is broadened significantly. Today, governance encompasses not only oversight and compliance but also ethical investment decisions, stakeholder engagement and transparency. Strong governance structures are essential for managing ESG risks, ensuring accountability and fostering long-term value creation.
140 August 2025