Initiatives and the broad understanding of environmental, social and governance (ESG) will not leave the agenda of financial services firms anytime soon, according to James Broderick, former head of UBS Wealth Management UK and Jersey, now an Impact Investing advocate and activist at the Association of the Luxembourg Fund Industry (ALFI) conference.
Broderick explained that the millennial preference for ESG-oriented investing is well known and established, and that backstop is not going to go away.
He encouraged the audience not to think of ESG as “the latest trend but a pivot into a permanent state”.
He also highlighted that we are questioning some of the things we have lived with for years and that at the conference there was talk about technology replacing fund managers.
Jonathan Willcocks, global head of distribution, M&G Investments added: “Looking as to where we go next, the reality is that I think we are at a stage where it is not just about the risk-adjusted returns but whaT your investments do to society and how it makes the world a better place.”
“Measurability for ESG is very important but I think within five years we won’t be talking about ESG as a debate it will be a given.”
“The question is how do we differentiate ourselves either as an industry or as asset managers. Therefore, the world then becomes focused on impact investing and the impact you make on the climate, on society and on the world.”
