On March 31st, Parmenion’s Passive ESG solution celebrated its third birthday! To mark the occasion, we’re embracing the power of three by asking ESG experts to share their three wishes for the future of sustainable investing.
Julia Dreblow, Vice Chair of the FCA's Advisers’ Sustainability Group
- Updated tax regimes and government incentives that make sustainability financially rewarding, benefiting forward-thinking investors while saving costs for society.
- The elimination of misinformation and misleading claims that undermine sustainability efforts.
- A ‘health/wealth warning’ for funds that neglect sustainability, requiring them to make more disclosures than those upholding high ESG standards.
Mark Foster, Investment Manager
- More funds to invest in helping society adapt to the effects of climate change, alongside current prevention efforts.
- Increased applications of AI for sustainability purposes, while also reducing the emissions generated by this technology.
- A Scrooge-like epiphany for Donald Trump, where he realizes the errors of his ways, sheds a tear, and fully embraces ESG.
Chris Hegarty, ESG consultant
- For listed companies and their investors to push governments towards urgent and ambitious climate action. While some politicians have faltered on this issue, businesses must emphasize the economic necessity of transitioning to sustainable energy sources.
- A more diverse and representative workforce within the investment sector, ensuring inclusivity and equality.
- For ever-more openness and transparency for investors about exactly where their money is invested.
Mollie Thornton, Senior Investment Manager:
- For leading small and mid-sized sustainable companies to be better rewarded in markets. Many ethical companies with strong financials and sustainability initiatives have lagged in performance despite their positive impact.
- Continued expansion in the range of available sustainable funds, particularly in alternative investment categories.
- For investment managers to hold companies accountable on ESG issues through voting and engagement. While many leading ethical fund managers remain firm in their approach, some major US investment firms are backtracking - this must change.
Simon Molica, Investment Director
- A continued drive towards a fully decarbonized world, led by governments through internationally coordinated initiatives.
- The reversal of human-driven impacts on the planet, aligning with the planetary boundaries framework.
- Dramatic improvements to energy grids to limit renewable energy wastage.
Joe Yallop, Investment Analyst
- For fund managers and investors to stay the course on ESG, resisting the pressures of the current anti-ESG sentiment and continuing to drive progress towards a more sustainable economy.
- The UK to continue its roll out of renewables, and become a leader in clean energy while other countries take steps back. Beyond the sustainability benefits, this shift offers significant economic advantages.
- For biodiversity to gain in importance alongside climate change, through initiatives such as the Taskforce on Nature-related Financial Disclosures (TNFD).
Every great journey starts somewhere
From left to right: Julia, Joe, Simon, Mollie and Mark when they were just three years old. Proof that big ideas can come from small beginnings!
Why ESG matters for the future
These wishes highlight the passion and dedication of ESG professionals in shaping a more sustainable financial future. The more we embed sustainability into investment strategies, the greater the positive impact on our planet and society.
Get involved! Share your own three ESG wishes (or a throwback photo from when you were three) and tag us on LinkedIn to join the conversation.
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This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.
