Investing in assets that will not only make a suitable financial return for the risk taken but also make the world a safer place for future generations is the biggest shift in institutional thinking for decades.
This is being driven by stakeholders, such as members, as well as regulators wanting pension schemes to prove that they are protecting savers from climate risk.
The rapid adoption of green investment strategies means that greener assets have become more expensive due strong demand and lack of adequate supply. This ‘greenflation’ is adding to other issues investors have to manage with inflation in the UK, the US and the EU closing in on 10%.
Our ESG Club coverage for July-August centres on this trend and the implications for investors in the face of this supply-demand imbalance.