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ESG investing proves positive
Ethical investing can have positive benefits to the bottom line, according to a new study released by Mercer.
The study, Shedding Light on responsible Investment: Approaches, Returns and Impacts, suggests there is a positive relationship between environmental, social and corporate governance (ESG) factors and companies’ financial performances.
Commenting on the study, Mercer global chief investment officer Tim Gardener said the idea that responsible investment did not have to come at a cost to performance was becoming well established in the institutional investment industry.
He said the latest study added weight to the analysis that found ESG factors could add real and measurable value to an investment portfolio.
Mercer Asia Pacific head of responsible investment, Helga Birgden, said that the mounting evidence meant that ESG issues were becoming part of mainstream asset allocation and made good investment sense.
She also pointed to the growing number of Australian signatories to the UN-backed Principles for Responsible Investment, and said this suggested there was growing awareness among trustee boards about the links between value generation and responsible investment.
AUTHOR
Mike Taylor
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