Sustainable Investment

The sustainable investment industry has been given renewed impetus in recent years, as an increasing number of investors recognise the benefits of considering a business’s impact, and the risk and opportunities it may present for financial returns. Index providers have also sought to capitalise on this trend, launching a variety of passive investment products which attempt to quantify and track a range of sustainability metrics.

Whilst lower-cost investment alternatives are often welcomed by investors, it is questionable whether they can provide the same assessment as an active manager when analysing sustainability criteria, much of which can be subjective and quite nuanced. So, should investors stick with active investment solutions that integrate environmental, social, and governance (ESG) factors and charge accordingly for the privilege, or opt for a cheaper alternative?

Our investment manager, Amelia Sexton, discusses this challenge in the following Money Observer report.