IGNORE SUSTAINABLE INVESTMENT AT YOUR OWN PERIL

evidence is mounting that ignoring environmental, social and governance (ESG) issues will expose investments to the kind of risk that will ultimately undermine their value, erode returns and possibly even lead to the collapse of the companies or other assets involved.

And as sustainable investing goes mainstream worldwide, institutions, fund managers, credit rating agencies and retail investors are demanding more careful scrutiny of the impact of climate change, the quality of corporate governance and the social consequences of investment decisions.

The shift in mindset is only partially driven by ethical considerations, although these are becoming more prevalent – particularly among young people, women, and high-net-worth individuals. There is growing recognition that a narrow focus on financial metrics for short-term