Reusable bags, paper straws and recycling are great initiatives, but many have elevated their thinking to sustainable investing. Kiwis are increasingly interested in how they can make their investment decisions in accord with their views about human rights, climate change and environmental sustainability. But where does one start? A good first step is to define goals around sustainable investing.
ESG Investing hotter than ever
The only thing hotter than the Hawke's Bay summer right now? ESG funds. Between April and June, as the COVID-19 pandemic gained speed worldwide, funds that prioritised ESG investing saw global assets under management hit a record $1 trillion, according to Morningstar. That was on the back of net inflows of $7.1 billion in those three months alone.
Is 2020 the year of ESG Investing?
Started in the 1970s, the sustainable investing movement was already showing strong growth before the pandemic hit and the ESG-managed investments world-wide had reached almost USD 31 trillion by start-2018, a 34% increase over two years.
