NIXON: “Investing today is increasingly about building a better world, in addition to building wealth or returns.”

Global concept

That’s Timothy Nixon, managing editor of sustainability for Thomson Reuters.

He says for years global investors have been shifting to portfolios based on environmental, social and governance factors, or “ESG Investing,” but last year’s international agreement on climate change has increased the pace.

Nixon says an estimated 30 percent of today’s global managed assets employ some kind of ethical filter. Companies typically included in ESG portfolios care about the environment, have a good record of human rights, and have diverse corporate boards.

Timothy Nixon
Timothy Nixon

Most ESG investing is currently self-regulated, but as consumers look for accountability, a growing number of institutional investors are, for example, voluntarily disclosing the carbon footprint of their portfolios.

But there’s more to ESG portfolios than ethics and sustainability – they’re also profitable.

NIXON: “What’s really driving this is actually performance. ESG investing now over the long term can deliver a better return than non-ESG investing.”

Global investors seen increasingly seeking profit opportunities through 'ESG' options. Click To Tweet

Now, with billions of dollars in assets, global investors can make money and be socially conscious at the same time.

Reporting credit: Pam Memmott/ChavoBart Digital Media.
Global concept photo: Copyright protected.

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