Passive investing has made a rapid rise over the past couple of years. When it comes to sustainable investing, however, index-based funds are still relative newcomers.
Some 39% of institutional assets in Europe are invested in sustainable mandates, according to a study commissioned by Union Investment, the German asset manager. The Nordics and the Netherlands are the frontrunners, while Germany and Italy are lagging behind.
The extent to which a company adheres to ESG-criteria does not materially impact stock returns. However, changes in ESG scores can tell you something about future return potential of a stock, according to new research commissioned by NN Investment Partners.
Sweden is a leader in socially responsible investing, so in Stockholm we gathered a group of leading SRI experts, fund buyers and managers to debate the big issues such as balancing ethics and performance, and whether to invest in the best company in ‘unethical’ areas – or avoid the sectors completely.
Three-fifths of European institutional investors expect the rise of passive investment vehicles to have a negative impact on shareholder engagement, reported the latest paper in the Hermes Investment Management Responsible Capitalism survey.
Socially responsible investing (SRI) has gained most foothold in France and The Netherlands, as differences across Europe remain enormous.