This is where engagement comes in, she adds.
“Through (collaborative) engagement and voting we influence corporate behaviour.
“In our thematic and SDG investing frameworks we seek additionality in the products, services, innovation and new business models of the companies we invest (more) in, thereby providing these companies with a shareholder or bondholder that understands their purpose and business model and is aligned with a long-term investment view.”
Balanced outlook
While there remains a lot of clamour and excitement in the area of ESG, a balanced outlook needs to be taken.
Hamilton Claxton advocates that while “there is lots of innovation happening and this should be encouraged in this new emerging area, [it should also be] balanced with clear regulations and guidance to prevent greenwashing”.
For Krishnan, fear is often a factor. “People often see ESG in polarised extremes. Either you go totally green now, or clients are afraid they’ll have to give everything away so they do not go green at all.”
The solution, he feels, as with any social or any environmental change, is communication.
He says: “You have to have people talking about it, and come up with a solution where all stakeholders win.”
