Our thinking

We’re making a bet (are we crazy?!)

7 January, 2021

One of the bright spots last year was the rising interest in and visibility of ESG in 2020. In their last newsletter of the year, the FT’s Moral Money team identified contributors to the ‘ESG boom’, and outlined why they are betting ESG’s rise will keep going in 2021. 

First, risk management is at the forefront of everyone’s minds. Experts have been warning governments and businesses for decades of the risks of climate change and, finally, we can no longer ignore the evidence. Companies are waking up to the fact that prevention is the best risk management strategy and taking steps to address ESG issues. 

Second, climate change will only continue rising up the agenda with COP26 looming later this year. 2020 saw many countries, including China, announce net zero commitments, which will now have to lead to action. Many countries will be looking for solutions and making changes that align with their climate ambitions. 

Third, mainstream and big-name investors are now getting in on the ESG action; with the support of the likes of Larry Fink, ESG financing is no longer side-lined to niche activist investors.  

And finally, consumers are ever more conscious of how their money is used. Following #MeToo and the rise of Black Lives Matter, consumers are calling for transparency and progressive change. This isn’t new news, but solutions are coming to market that will amplify consumer voices, such as Tumelo, a technology solution for investment providers to engage shareholders (both big and small) in company voting processes.  

Call us foolish, but we’re doing it: we’re betting on ESG for 2021.  

By Jennie Mitchell