Scottish Oriental Smaller Companies trust deems ESG an 'emerging risk'

NAV up 18.6% over the year

Beth Brearley
clock • 3 min read

The board of the Scottish Oriental Smaller Companies trust (SST) has highlighted ESG as an "emerging risk" to the company, with the portfolio managers adding they are "not prepared to invest in box-ticking ESG exercises".

In the annual financial report for the year ended 31 August 2024, the board of SST bemoaned the swathes of regulations related to ESG and said the effects of climate change are almost impossible to predict. "The increasing volume, short implementation deadlines and lack of commonality of new ESG regulations issued by multiple regulators, accompanied by increased regulatory focus and labelling and marketing of investment products as having ESG characteristics increase the perceived risk of greenwashing," the board said. "[SST's] investment process is focused on ESG issues and puts a gr...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

Morgan Lewis' William Yonge: SDR and consumers' desire to 'do good' with their money
ESG

Morgan Lewis' William Yonge: SDR and consumers' desire to 'do good' with their money

Investors could become 'lost' in 'jargon'

William Yonge
clock 02 December 2024 • 4 min read
City Hive's Bev Shah: Why target setting matters
ESG

City Hive's Bev Shah: Why target setting matters

'Provide focus and motivation'

Bev Shah
clock 28 November 2024 • 3 min read
Jupiter's Jason Pidcock on ESG 'nonsense' and why China remains 'unappealing'
ESG

Jupiter's Jason Pidcock on ESG 'nonsense' and why China remains 'unappealing'

Manager of Jupiter Asian Income fund

Linus Uhlig
clock 27 November 2024 • 5 min read
Trustpilot