For the vast majority of investors, the stock market remains primarily a place for making money work harder. But increasingly, environmental and social consciousness is playing a role in investment decisions.
But a lack of clear guidelines on ESG reporting means there has been a rise in both companies and funds attempting to make themselves seem cleaner than they are - and life harder for investors that want to make their money genuinely work for good.
On this week's Investment Hour John Hughman and Megan Boxall discuss these sticky issues with associate editor Algy Hall, with some help from Ronald Cohen, famed venture capitalist, Peter Toogood, chief investment officer at retirement solutions provider Embark Group and Tom McGillycuddy, co-founder of impact investment app, Tickr.
Click on the links below to read more about ESG investing
Climate change is arguably the number one threat to our species but, although some governments were talking a good game before Covid-19, nothing like the level of spending that we have seen to combat the pandemic has been enacted. Could the virus prove a tipping point which sees greater investment in green initiatives?
For several decades environmental, social and governance (ESG) investing was chiefly regarded as a way to satisfy the conscience of certain investors while hopefully not doing too much damage to returns. However, over recent years attitudes have begun to change.
Few people are aware of what their workplace pension invests in, let alone how their pension provider incorporates ESG matters into the process. But there is good news for those wanting a greener pension: a raft of legislation is now driving a greater focus on sustainability.