Secular challenges like resource scarcity, demographic shifts and climate change are redefining societal expectations, public policies, regulatory frameworks. They're also redefining business environments and investment outcomes.
Public or private, the companies that successfully translate these challenges to their advantage can expect to outperform their peers in the future.
Traditional investment frameworks that rely exclusively on conventional financial analysis may fail to account for material non-financial factors arising from global sustainability challenges. Yet mainstream investors still underestimate the impact of long-term sustainability trends on companies’' ability to succeed in the long term. This can lead to market inefficiencies that investors who focus on sustainability factors can exploit.
Fiduciary Duty in the 21st Century
Ignoring environmental, social and governance factors in investment processes is a failure of fiduciary duty. For more information, please contact us.