The long and the short of ESG in the Covid-19 crisis

Resetting priorities

clock
Camilla Ritchie of Seven Investment Management
Image:

Camilla Ritchie of Seven Investment Management

There has been a view that environmental, social and governance (ESG) investing was just a fad, which would go away at the end of the bull market because it was expensive and just something nice to have while the going is good.

The Covid-19 crisis is therefore a good test of ESG, with many wondering how would it perform in these exceptional market conditions? It's still too early to say anything much about how financial markets are going to turn out once this pandemic passes, but ESG has been a bit of a bear market phenomenon, with strong flows of money into ESG ETF funds during the first few weeks of the crisis, while other funds saw outflows. Why is that? Well, it could be a number of things. Perhaps people have been buying companies that score higher in terms of ESG because they have appreciated how much ...

To continue reading this article...

Join Investment Week

  • 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

London Climate Action Week: The most practical solutions
ESG

London Climate Action Week: The most practical solutions

What are managers doing?

Investment Week
clock 27 June 2022 • 1 min read
Kimberley Lewis, head of active ownership at Schroders
ESG

Schroders: Why we are against Sainsbury's being forced to become Living Wage-accredited

AGM on 7 July

Kimberley Lewis
clock 27 June 2022 • 4 min read
The worst contender dropped 166%, with its flows going from net positive to net negative
ESG

Morningstar figures reveal drop in recently ESG rebranded funds flows

Worst fund saw 166% drop

Kathleen Gallagher
clock 24 June 2022 • 5 min read
Trustpilot