'Millennials get a lot of attention for driving ESG
investing,' said Todd Hedtke, chief investment officer for Allianz Investment Management LLC.
According to the index's manager FTSE Russel, investors use these indices when creating or assessing responsible investment funds and other products for its transparent management and clearly defined ESG
"As appetites for ESG
investment opportunities continue to grow, institutional investors need options across all asset classes.
At the heart of the issue was uncertainty in how effective the company's risk management processes are as they relate to ESG
, an issue that should be of great importance in all boardrooms today.
A key premise of sustainable investing is that firms "do well by doing good." This implies that a firm's ranking on ESG
criteria has a causal effect on its financial performance, for example by lowering its cost of capital.
They will pressure the employers, who will see that ESG
investing is aligned with their fiduciary duty and not in conflict with it."
Given the number of funds providing investors with the opportunity to invest in ESG
companies without having to research individual companies' ESG
ratings, it's no surprise that Morningstar got involved.
BlackRock is among the first clients to license the index for a suite of Canadian ESG
ETFs available starting March 21, 2019.
Responsible investing is based on the assumption that ESG
factors have financial relevance.
Dr William Yu, Chairman of the Judging Panel of the Best in ESG
Awards, said, "We are so excited to see the sustainability impact demonstrated through the ESG
best practices brought by the participating companies.
RBC Global Asset Management recently published its third annual Responsible Investing Survey, and My-Linh Ngo, ESG
[environmental, social and governance] investment specialist for the firm’s BlueBay Asset Management division, in London, offered PLANADVISER her take on the results.