A quick cuppa with Fiona Reynolds, Managing Director, the Principles for Responsible Investment (PRI)
Hello Fiona. At the PRI In Person conference in September, one of the main take-aways from the various conversations I had is that considering environmental, social and governance (ESG) factors into investment analysis is becoming more mainstream. Did you get the same impression?
Yes, ESG is becoming much more embedded across the industry.
One of the biggest hindrances to effective ESG integration is that it can still be seen as an after thought to the main investment process. Fund managers can have separate ESG teams that are not embedded in their portfolio management teams. Portfolio managers might be talking to companies about very different things from the ESG team and they may not always be joined up. That lack of cohesion is a big hindrance.
Increasingly, though, investment teams are finding they either have to understand ESG much better, or the ESG analysts sit within the portfolio management team. This is a really important development for getting responsible investment front and centre, which will help the whole industry.
Most read articles
A quick cuppa with Faith Ward, Chief Responsible Investment and Risk Officer, Environment Agency Pension Fund