Sustainability

Environmental, social, and corporate governance

Investing for the Future

Sustainable investing refers to a range of practices in which investors aim to achieve financial returns while promoting long-term environmental or social value.

Combining traditional investment approaches with environmental, social, and corporate governance (ESG) insights has led to investors generating more comprehensive analyses and making better investment decisions. Sustainable investing is about investing in progress and recognizing that companies solving the world’s biggest challenges can be best positioned to grow. It is about pioneering better ways of doing business, and creating the momentum to encourage more and more people to opt into the future we’re working to create.

Sustainable Investing on the Rise

At the beginning of 2020, the value of sustainable investment in major financial markets globally stood at €35.3tn, according to the Global Sustainable Investment Alliance (GSIA), and accounts for 36 percent of all professionally managed assets across the U.S., Canada, Japan, Australasia and Europe. The last two years alone have seen growth of 15 percent, the GSIA says.

Driving Factors on the Rise

The number and diversity of investors looking for sustainable opportunities are on the rise for several reasons:

  1. There is a growing hypothesis and recognition that ESG research and analysis can potentially identify investment risks and generate excess returns.

  2. Future decision-makers are asking more of companies and are seeking more sustainable investment solutions.

  3. Regulators are expanding their focus on incorporating sustainability into investment information and decision-making.

Sustainable Solutions

There is a wide range of products available to investors looking for sustainable solutions. At HCM, we can classify client motivations into a spectrum from Positive to Negative screening.

Positive Screening

Encompasses investments in sectors, companies, or projects selected from a defined universe for positive ESG performance compared to industry peers

Negative Screening

Excludes specific sectors, companies, or practices from a fund or portfolio based on ESG criteria

Let’s Make an Impact Together

Sustainable or ESG-focused strategies carry risks like any other investments, yet we see encouraging evidence that investors can make their portfolios more sustainable while pursuing traditional financial goals.

To learn more about how to develop a net-zero action plan reach out to us, we can identify key action points and pinpoint what is required to change.