As more investors back responsible businesses and funds, the growth of assets under management that are ESG-compliant (under one standard or another) has been soaring in recent years. What's more, the geographic scope of this market is growing. A few years ago it was mainly big in Europe , but it's now picking up fast in the US and expanding to Asia, driving a massive boost this year alone. Why? By throwing a glaring spotlight on global inequality, the thinking goes, the pandemic has been a major driver of investment that focuses less on hard profits and more on socially and environmentally responsible capital management. Will this sustainability surge carry on next year? We take a look at ESG investment's upward trend over the past eight years — globally and by region.
The forced slowdown of global economic activity due to the coronavirus pandemic has slashed carbon emissions around the world, opening a unique opportunity to make real progress in the fight against climate change. But there is fear that it won't be enough, and the world will go back to its old ways when we get rid of COVID-19. However, even before the public health crisis, some major emitters had already taken ambitious steps to rethink how to make their own policies more sustainable.
In Canada, the prominence of oil in the economy doesn't mean that it should hide from the existential challenge of climate change. Fossil fuel profits make Canada not only more responsible but gives the nation the resources to commit to a bold climate policy, Canadian Minister of Natural Resources Seamus O'Regan said during a panel discussion on sustainability at the 2020 GZERO Summit in Japan.
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Listen: Benjamin Franklin famously called on American business leaders more than two centuries ago to "Do well by doing good." To him, that meant creating companies that were not just about the bottom line, but also that helped foster happier and healthier communities. Now, as 2021 approaches and the world recovers from the greatest crisis of our lifetimes, sustainable investing is a bigger discussion than ever. What does it mean, and how does it not only help the environment and societies but also build your bottom line? That's the topic of the latest episode of Living Beyond Borders.