Old Mutual launches ESG rating system for unit trust funds
WORDS ON WEALTH:
ESG Investing â focusing on environmental, social and governance criteria â is gaining momentum worldwide, with huge implications for how companies, and even governments, operate.
As I have mentioned before in writing on ESG, the movement is especially strong among younger investors, who tend to blame their parentsâ generation for global warming, environmental destruction and the alarming rise of inequality in developed nations.
Over and above the moral incentive, there is convincing evidence that investing in sustainable, environmentally friendly, socially responsible companies gives you better long-term returns than investing in companies that have low ESG scores.