Not on top of ESG investing? Don’t ignore it

If you’re not familiar with how ESG investing works, it’s time to start researching.

ESG (environmental, social and governance) investing means to invest with sustainable, ethical impacts in mind, and there’s two main reasons to be on top of it.

First, clients are becoming more interested, and they’re asking more sophisticated questions, says Hyewon Kong, associate portfolio manager at AGF Investments. Second, in coming years, ESG investing considerations will likely become part of the overall analysis process managers use when picking stocks–that means it won’t be a separate, additional tool.

Kong took part in a CFA Society Toronto seminar about ESG investing trends this week. The panel also included Aaron Bennett, partner, research, at Jarislowsky Fraser and Jean Lavigueur, associate, investment strategy and risk, Ontario Teachers’ Pension Plan.

The three panelists said the following three trends would impact the ESG space going forward.

1. Clients’ growing interest in the responsible investment space. 2. The streamlining of how ESG data is collected, measured, analyzed and used. 3. The effect of President-elect Donald Trump’s climate-change outlook and policies.

For more on ESG investing, check out the following live tweets, and read the below links.

Impact investing makes gains with clients

Most clients unaware of responsible investing

Experts dish on ESG investing trends, challenges

Domestic RI portfolios: Are they viable?

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