Cos. could attract millennials by championing sustainable & responsible investments
Author: Pauline Skypala, Financial Times (USA)f, Published on: 30 January 2019
"‘Responsible’ fund managers must do better to impress millennials", 28 Jan 2019
A recent survey by First State Investments found that more than 80 percent of millennials are interested or very interested in sustainable, or responsible investing (SRI), where fund managers take account of environmental, social and governance (ESG) criteria when picking stocks or tracking an index... Some managers integrate ESG factors into all products and decisions as a way to lower risk and/or generate returns. They recognise that these factors are material to companies’ financial performance... Divestment, where investors commit to selling their holdings in fossil fuel companies, sends a more cogent message and has had material effects, particularly on the coal sector. A November 2018 analyst note from Goldman Sachs said coal producers have been derated by about 60 percent since the divestment movement began in 2013... A report last year found that although UK fund managers recognise that fossil fuel producers face reputational, litigation, regulatory and energy transition risks to their valuations, this is not reflected in the products they offer, particularly to passive and retail investors. [Refers to BlackRock].