Taking A Systematic Approach to Prosocial Investment

Judging by the growth in signatories to the UN PRI in recent years, the investment management industry is largely sold on the benefits of integrating ESG issues into investment processes. Their clients, the owners of the assets for whom they invest, appear less persuaded. Is this because the managers’ product offerings fail to distinguish between those who wish to invest for client gain and those who invest for general good? Or is a more cynical interpretation of managers’ so-called conversion warranted?

This white paper considers not only why investors may wish to incorporate ESG issues into their investment process, but also why governments may encourage this too. The paper argues that both parties will influence the design of investment products, and that investment managers and asset owners will collaborate to change ESG policies to improve the outcomes for the ultimate investor.

Read the full report here