Asset managers must provide evidence demonstrating the right investments are being made both from financial and sustainability aspects, or risk undermining investors’ trust, Schroders’ Alex Funk says.
In an exclusive video interview with Investment Week, Funk spoke to ESG editor Beth Brearley about where we are today with ESG issues and highlighted evidence as the most important factor in progressing sustainable investing.
"If you cannot evidence the positive impact you are making on people and the planet with credentials, you actually undermine the trust of the investor, and therefore you'll find that investors allocate less to such investment. And that's counterintuitive to what we're all trying to achieve with a more sustainable world," Funk said.
Sustainable Investment Festival
Alex Funk is one of the speakers at this year's Sustainable Investment Festival, which is being held virtually on 22-25 June.
His presentation on day three of the event (Thursday 24 June) will look at this issue of how to evidence the positive impact investors are making by investing more sustainably, as well as unpacking climate change and how it has added a new dimension to investing and why this needs to be at the forefront of portfolio construction.
He will discuss how to incorporate climate change assumptions into asset class forecasts, ultimately leading to a more sustainable strategic asset allocation.
Register for the Sustainable Investment Festival and view the full programme here: www.sustainableinvestmentfestival.co.uk