Sustainable investing is one of the fastest growing segments in finance, with assets under management increasing by 61% from 2012 to 2014 to USD 21.4 trn, according to the Global Sustainable Investment Alliance. No matter who you work for in the investment industry - I recently joined UBS Asset Management as head of sustainable and impact investing from a prior role as CEO of RobecoSAM - senior executives can no longer ignore clients' interest in sustainability factors or their effect on performance.
All sustainability factors must be integrated when researching investment assets to get a full picture of their risks and benefits. Does a company understand what the risks are in a supply chain, or with respect to climate change, and how to manage them? I could never imagine investing my own money without understanding what the risks and future revenue drivers of a company are. Nowadays that must include environmental, social and governance, or ESG, criteria. An analysis without answering these questions is not complete.