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Difficulty for fund managers if ESG not considered

It will become difficult for fund managers in the future to sell their products if they do not take into account environmental, social, and governance (ESG) factors, Aktia Asset Management believes.

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Jassmyn Goh

Teresa Platan, manager selection, for Aktia said that ESG would become mainstream in the future and would be a requirement for all managers to integrate the factors into their investment processes and decision making.

She said Aktia wanted fund managers to be signatories of the UN Principles for Responsible Investment (PRI) and wanted them to have dedicated ESG resources where they used external research, and to have methods of identifying global compact controversies and violations.

Platan said it was crucial to evaluate ESG risks as investors wanted to invest in companies that had sustainable business models that took care of all their stakeholders and did not harm the environment or society.

For more on the attractions on ESG please click on the video panel above.

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