How has COVID-19 impacted ESG investing?

The COVID-19 pandemic prompted the most severe market crash since the global financial crisis, but for investors who focus on ESG issues, there was some comfort to be found in the relative resilience of high-rated ESG funds.

Sustainable investing evolved in 1960 and has grown over the years. Despite the pandemic – the first quarter saw large inflows into ESG funds.

ESG funds with higher ESG ratings proved resilient and outperformed those with lower ESG ratings.

The interest in ESG has grown so much that 78% of asset owners now incorporate ESG into their investment processes.

Sustainable investing considers financial analysis along with Environmental, Social and Governance considerations.

The pandemic has seen a greater focus on business continuity, employee health and safety and supply chain management as well as the environment.