The arrival of the COVID-19 pandemic has had far reaching consequences on all of us. In much the same way that the ’08 crisis changed the way in which the financial services markets operated, we predict that COVID-19 will force every investor to take ESG seriously. In even these early days of the pandemic – with nations such as the USA and UK yet to feel the full brunt of the virus – ESG funds have fallen by half the decrease of non-ESG funds on the S&P 500. More than anything, this pandemic underlies the vulnerability & fragility of a fully globalised word and raises the question – how can businesses adapt for a post COVID-19 world?
Responsible investing is widely understood as the integration of environmental, social and governance (ESG) factors into investment processes and decision-making. ESG factors cover a wide spectrum of issues that traditionally are not part of financial analysis, yet may have financial relevance.’ Forbes, 2018