Twenty years ago, investors mocked the launch of the first ESG focused index called FTSE4Good. But two decades later, interest in ESG indices is driving some of the biggest allocations of capital today.
FTSE Russell Americas Head of Sustainable Investment Tony Campos discusses what has changed since then, what’s driving markets’ and companies’ need for certainty, and what the world of sustainable investing might look like in 2026.
You can now view the full video at the link below
For many investors, sustainable investment (SI) is still about setting the limits of the universe of stocks or bonds in a portfolio.
Emerging markets (EM) have been regarded as a high risk, and predominantly risk-on asset class, when the Covid crisis occurred in Q1, 2020. Fears centred on the risks of deep contagion across the asset class, characteristic of previous crises in the late-1990s, and during the GFC, should cross-border capital flows collapse, after Lockdowns and extreme risk aversion.
After a protracted period of calm, volatility returned to markets in 2022—and has proven it’s here to stay in 2023. Investors are now looking to position portfolios for a potentially bumpy road ahead, leading to renewed interest in defensive strategies.
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