There is a major transformation in the investment sector. Experts expect that environmental and social considerations and governance will become secondary concerns because financial returns take priority in investment decisions.
A Pensions and investments The report sheds light on how to pay the regulatory and political pressures of asset owners and money managers to rethink their investment strategies.
Quoted from industrial experts, including the Cresen Spalding from CERES and MAULIK DOSHI from Steward Reedqueen Usa, the P&I report reveals that many institutional investors are still committed to sustainable investment despite the increasing scrutiny of ESG movement. However, some companies convert their messages to confirm the financial returns, which are also compatible with new regulations.
“The repetition of the need to exceed the container approach,” “The main star of the investment decision is about financial returns.” However, it does not mean that investors ignore ESG considerations.
Environmental -friendly energy -friendly companies are still the smartest long -term investments. While the ESG bubble was built on dual broad strategies, the environmentally friendly energy remains mainly a strong investment. Even as investors are adjusted from their messages to new regulations, the momentum continues to be growing.
According to International Energy AgencyInvestments in environmentally friendly energy now double those in dirty energy. Among the global energy investment of $ 3 trillion, about $ 2 trillion is allocated to environmentally friendly energy and infrastructure technologies. Unlike dirty energy investments, which they offer shocks in prices and geopolitical risks, environmentally friendly energy investments and long -term growth can provide.
Regardless of the high expected returns, the clean economy also nourishes the creation of job opportunities and economic flexibility. In fact, and American work statistics office Reports indicate that wind turbine technicians and solar panel stabilizers are the two best growing functions in the country.
So, what does all this mean for the future of investment?
Instead of giving up sustainable investment, asset owners and money managers must improve their methods. Instead of considering ESG as a label sign, environmentally friendly energy and flexible companies will enable them to give priority to financial returns while supporting Earth -friendly practices. In other words, long-term trends-not short-term policy-will lead to great financial victories in the coming years.
As Spaling said in the P&I report, “You must be in harmony with where the economy is going, and how it is applying to it, in order to benefit, and the companies you invest in it benefit from.”
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