Since Joe Biden took office as new president in the US, topics around sustainability and environment have returned to the agenda. However, implementing ESG investment criteria is likely to be a challenge for many investment firms.
Investment companies need to adopt a systematic ESG approach
With the start of the new administration under U.S. President Joe Biden, policymakers on the other side of the pond are swinging the pendulum further back toward sustainability and ESG. In addition to comprehensive changes to environmental laws on the matter of fossil fuels and re-entry into the Paris Climate Agreement, the main focus is on revising ESG investment criteria. For financial markets, this means much tighter frameworks for financial products – a large challenge especially for smaller investment boutiques. The situation is made more difficult by the fact that there is no homogeneous definition of sustainability available yet. However, investment firms ignoring the forthcoming changes risk hampering their own business in the long term. Instead, it is important to react to the increased requirements in a timely manner, and to do so with the support of …
Shenkman has also recently published an article on the topic and clearly positions itself on the side of the proponents of systematic ESG strategies.
Since Joe Biden took office as new president in the US, topics around sustainability and environment have returned to the agenda. However, implementing ESG investment criteria is likely to be a challenge for many investment firms.
Investment companies need to adopt a systematic ESG approach
With the start of the new administration under U.S. President Joe Biden, policymakers on the other side of the pond are swinging the pendulum further back toward sustainability and ESG. In addition to comprehensive changes to environmental laws on the matter of fossil fuels and re-entry into the Paris Climate Agreement, the main focus is on revising ESG investment criteria. For financial markets, this means much tighter frameworks for financial products – a large challenge especially for smaller investment boutiques. The situation is made more difficult by the fact that there is no homogeneous definition of sustainability available yet.
However, investment firms ignoring the forthcoming changes risk hampering their own business in the long term. Instead, it is important to react to the increased requirements in a timely manner, and to do so with the support of …
Shenkman has also recently published an article on the topic and clearly positions itself on the side of the proponents of systematic ESG strategies.
