ETHO

Funds with sustainability in mind are super popular these days; these six are ready to deliver returns.

Environmental, social and governance issues will assume greater importance this year, with four trends converging,  analysts at Moody's say.Recovery from COVID will increase focus on social and environmental challenges."Major economies

Russell Investments conducted its 2020 annual ESG survey across equity, fixed-income, real assets and private markets asset managers from around the globe to assess their attitudes toward responsible investing and how they integrate ESG factors into their investment processes.According to the results the survey, an increased number of firms are incorporating additional ESG metrics into their investment process, expanding their dedicated responsible investment resources and providing greater transparency through reporting.Data providers are integral in providing a broader perspective of companies or entities in the marketplace, with engagement activities also playing a vital role in asset managers gaining and making use of ESG-related information.

ESG Miniseries 3 of 3.The rapidly expanding ESG bond market allows investors to target the UN’s Sustainable Development Goals (SDGs).It also drives the transition to a net zero carbon economy.

ESG Miniseries 2 of 3.We believe the size of bond markets is important.And recurring nature of debt issuance make fixed income investors a meaningful force in driving sustainable change.

ESG Miniseries 1 of 3.How can bond investors contribute to more sustainable financial markets?Members of our ESG investing team discuss accelerating macro trends and their reasons for optimism.

Even if you overlook disagreements on ESG as growing pains, there is one more component that adds noise to the mix and that is the direction of causality.The power of the ESG sales pitch has always been that it offers something good to everyone involved.There is a plausible scenario, where being good creates a cycle of positive outcomes, which makes the company more valuable.In my view, the hype regarding ESG has vastly outrun the reality of both what it is, and what it can deliver, and the buzzwords are not helpful.

Why interest in sustainable investment is on the rise.What impact a sustainability focus has on performance.How investors can implement a sustainable investment portfolio.How FTSE Russell measures a company's ESG performance.