LONDON, April 28, 2022 /PRNewswire/ -- Abingdon Global Assets has joined a growing number of companies committed to ESG (Environmental, Social, and Governance), which was developed through the United Nations Principles of Responsible Investment. Abingdon has pledged significant investment into environmental governance strategies whilst continuing to create a foundation of sustainable methods to ensure that environmental and social responsibility are at the forefront of the organisation's mind and reflected in all business proceedings.
The COVID-19 pandemic has accelerated the shift towards ESG investing by focusing investors' attention on the apparent vulnerability of the world's financial systems. As a result, both investors and consumers have turned the conversation towards the consequences of global interdependence and the importance of sustainability.
Whilst many companies have included Corporate Social Responsibility as part of their management framework, it's only recently that it has extended to an overall investment structure.
According to a CNBC article, in February 2020, Saxo Bank Chief Economist Steen Jakobsen said in his latest quarterly outlook report: "For the first time since WWII we sense a shift in which climate and the environment — not growth — will become the priority of governments and their citizens, as shortages of food, clean water and air become existential questions…"
This appears to be true. On the regulatory side in 2020, the EU launched two initiatives: The first was on January 13, which established new ESG disclosure requirements for EU funds and asset managers in an effort to "integrate ESG considerations into its financial policy framework and mobilise finance for sustainable growth". The second was on May 21, where the EU unveiled "the world's greenest recovery package". This offers tax incentives and grants for investment in electric cars and charging stations, retrofitting buildings for greater efficiency, and renewables and "green hydrogen".
As demonstrated, in the last two years, there have been significant, tangible, and actionable strides to accelerate investment management toward ESG.
The trend towards sustainable investing means that more investment professionals are including both the financial importance and pertinency of social factors in their analysis. Externally published reports have shown that 85% of investment professionals now use ESG factors to get a clearer understanding of the companies in which they intend to invest.