It is now a daily occurrence to see an article in the financial press, praising the merits of environmental, social and governance (ESG), lauding its success as an investment strategy and proclaiming it to be the next big thing in the asset management world.
The world economy is in good shape and we expect stock markets to reflect this. Unemployment is falling at the global level and should continue to do so as companies with strong profits continue creating jobs.
2018’s Earth Day, World Environment Day and World Oceans Day, all focused on the theme of beating plastic pollution, through prevention and solution provision, highlighting not only the severity of the issue but also the rapid increased awareness. We see ocean plastics as a significant risk for companies and are engaging them, where relevant, on the topic.
Business ethics breaches have emerged as the most material ESG concern for investors in the pharmaceutical and broader healthcare sector, and has been the key focus of our engagement with the sector in recent years.
In the past ten years, India has faced public governance scandals at some of its largest blue chips.