Material factors such as the strength of investor protections and institutions in some countries can be omitted in governance ratings, Causeway's Mozaffar Khan notes while emphasising the importance of ESG as part of assessing risk and return.
The outgoing Media Super chair, Labor stalwart, staunch industry fund advocate and one-time Australian Financial Review editor says we should put the current pace of industry change into perspective. Despite a raft of ongoing debate, crises and reform, the upheaval needed to get super off the ground was a much bigger struggle.
“Everyone loves to hear about culture now,” according to Willis Towers Watson's Sara Rejal, who noted during a panel discussion at the Absolute Returns Conference Digital 2020 conference on Wednesday that funds are interested in a broader due diligence particularly with its hedge fund and alternative strategy partners.
Money managers wanting to take advantage of the clear global trend towards ESG models should look at those businesses willing to spend time and resources evolving and re-developing their business models, according to Newton Investment Management's Andrew Parry.
Investors need to collaborate for systemic change, a discussion involving asset owners and sustainability experts has highlighted. Investors need to work with government, enshrine beliefs and educate beneficiaries on the importance of sustainability.