As we stand on the cusp of the new year, astute investors from across the globe are casting an anxious glance into the future. Their question? What will shape the world of ESG (Environmental, Social, and Governance) investing as we steer towards the unchartered waters of 2023. This arena, once a niche corner of financial markets, has burgeoned into a mighty labyrinth, defining the contours of responsible investing. With a surge in growing environmental and social consciousness among stakeholders, this is no eclipse that will wane, but a waxing crescent displaying its burgeoning prominence, mirrored across financial landscapes. Delving headfirst into the meanderings of this labyrinth, we seek to analyze and unravel the dimensional shift and future implications in the realm of ESG investing, making sense of the complexities and the ripple effects this evolution will uphold in our collective financial future. By employing rigorous research and tapping into community wisdom, let’s navigate this nuanced ecosystem, anticipating the tectonic shifts poised to reshape ESG investing in 2023.
Exploring the Current State of ESG Investing
ESG investing, short for Environmental, Social and Governance investing, has been carving a niche for itself in the financial world over the past few years, growing substantially both in terms of popularity and capital inflow. As we stand at the precipice of 2023, it is essential to understand and explore the current trends and patterns of this sector for predicting its future role.
Although ESG investing was once considered a niche subset of the broader investment universe, it has now largely moved to the mainstream. This journey from obscurity to prominence has happened due to an increased awareness about the urgency to address issues such as climate change, economic inequality, and governance.
Today, investors and corporations alike are demonstrating a heightened consciousness towards sustainable practices. Be it environmental causes or social inequality, there’s an increasing alignment between investment decisions and responsible actions. Goldman Sachs Group, for instance, raised a whopping $2 billion for its new ESG fund while BlackRock has rolled out new impact mutual funds that support ESG initiatives.
According to a study by the Global Sustainable Investment Alliance, sustainable investment assets increased by 34% over the past two years, marking a pivotal shift in global investment trends. Bloomberg also estimates that ESG assets may jump to as much as $53 trillion by 2025, representing a third of global assets under management.
“Investment values are no longer solely about financial returns. They are inextricably linked to the impact of that investment on society and environment,” says Andrew Lee, Head of Sustainable and Impact Investing at UBS.
However, the ESG sector hasn’t been without its challenges. The lack of standardization in ESG metrics and assessment criteria and the need for more transparency and reporting are a few areas that require attention and reformation. The discrepancy in ESG ratings given by different agencies is reflective of this underlying issue, thereby stressing on the importance of forming universal guidelines.
Thriving despite these challenges, ESG investing has made substantial inroads in the financial landscape. As we look towards 2023, this trend appears set to continue. Its pull is now stronger than ever, drawing in everyone from individual investors, large banking corporations to even countries considering national ESG standards. Evidently, ESG investing has become a focal point in discussions surrounding finance, economics, and sustainability.
What is ESG Investing?
Before we plunge into the trajectory of ESG investing in the upcoming year, it’s crucial to establish a firm understanding of what ESG investing truly is. ESG investing refers to the practice of investing in companies that meet the criteria of Environmental, Social, and Governance (ESG) factors.
In terms of the environmental aspect, it pertains to how a company’s processes are affecting the environment. This includes assessments of waste management, energy use, pollution, and natural resource conservation. The social lens, on the other hand, scrutinizes how a company manages relationships with its employees, suppliers, customers, and the communities where it operates. This also involves human rights, labor standards, and community developments. Lastly, but arguably as significant, is the governance factor – this encapsulates a company’s leadership, executive pay, audits and internal controls, and shareholder rights.
Over the past decade, ESG investing has slowly yet surely moved into the mainstream. A growing number of investors are becoming increasingly conscious of the non-financial impacts of their investments and have started to incorporate these ESG factors into their decision-making process. In simple terms, it’s an approach to investing that believes a company’s long-term success is linked with its commitment to positive societal impact, propelling a sustainable world forward.
In essence, ESG investing is about more than just producing monetary returns. It’s about creating and supporting a sustainable future for all – a principle that continues to appeal to investors worldwide.
While the approach is seemingly novel, it underscores a fundamentally traditional rule of investing: reckon with all pertinent factors that could impact a business’s prospective financial performance and judge accordingly. The past has taught us that companies with sound governance and sustainability parameters often fare better than their counterparts who disregard these considerations.
As we stand on the cusp of 2023, those involved in ESG investing must remember the intricate balancing act it entails. It’s a trade-off, a compromise, and yet, possibly the most rewarding form of investment in the long term.
This understanding sets a robust foundation for us to dig deeper into the future of ESG investing.
Growth and Performance of ESG Investing
In recent years, Environmental, Social, and Governance (ESG) investing has become increasingly popular, gaining significant traction in the global marketplace. Such a transformative shift in investment strategy is expected to continue into 2023 and beyond, based on a wealth of statistical data and recent trends.
ESG investing is a approach that considers environmental, social, and governance factors in investment decisions and strategies. By focusing on these aspects, investors pay attention to the ethical implications of the companies they invest in, ensuring that their money supports conscientious corporate practices. As a consequence, ESG investing isn’t merely about doing what’s right—it’s about making profitable investment decisions that align with a sustainable and equitable world.
Over the past decade, ESG investments have shown a remarkable growth trajectory. According to a 2021 report by the Global Sustainable Investment Alliance, globally, there was over $35 trillion invested in ESG assets at the start of the year, a 15% increase from two years prior. This growth trend isn’t limited to certain geographies or markets, either—it pervades all sectors and regions globally.
In addition to this impressive growth, ESG investing has also demonstrated robust performance. Analysis from Morningstar has shown that a majority of ESG-oriented funds have outperformed their conventional counterparts over different time frames. Research by MSCI also found that companies with strong ESG practices displayed a lower cost of capital, lower volatility, and fewer instances of bribery, corruption, and fraud.
Analysts predict that ESG investing will continue to expand and evolve in 2023. The future of ESG investing will likely be shaped by greater transparency and improved data, as investors demand more detailed reporting on environmental, social, and governance impacts.
Moreover, regulatory bodies worldwide are moving towards more stringent ESG disclosure requirements. This shift will provide investors with better information to make informed decisions about their investments. Furthermore, improvements in technology, specifically in the area of AI and data analytics, are expected to enable more precise forecasting and risk assessment in ESG investing.
Without a doubt, the revolution in ESG investing is a profound and rapidly evolving phenomenon. It presents significant growth potential and offers a promising path towards a socially conscious and sustainable financial system. It couples concurrently the societal need for a more sustainable world, with an investor’s seek for profitable opportunities.
The growth and performance of ESG investing are undeniably robust and are expected to continue into 2023. The increasing emphasis on sustainability and transparency, coupled with technological advancements, suggest that the future of ESG investing looks bright indeed.
Popular ESG Investment Opportunities
The future of Environmental, Social, and Governance (ESG) investing in 2023 holds promising prospects. There exists a multitude of popular ESG investment opportunities that continue to shape the future potentials of ESG investing. As we explore these opportunities, one can’t help but marvel at the potential impact of ESG investing on our society.
Remarkably prominent is the renewable energy sector, positioned at the forefront of ESG investment opportunities. With the global push towards a more sustainable world, renewable energy infrastructure projects are seeing increased interest from investors. They represent a timely and tangible asset, with an appreciating investment value due to scarcity and the growing demand for renewable resources.
Moreover, green bonds are becoming an attractive place to park funds. As “debt-based tools to fund green initiatives”, green bonds not only promise a return on investment but also encompass an investor’s ESG preference into their portfolio. The global green bond issuance reached $269.5 billion in 2020 alone, and expectations suggest an even more substantial growth in 2023.
Furthermore, a gradual shift towards more social and governance factors in ESG investing is apparent. The rising demand for companies that are socially responsible and govern with integrity is evident. More and more investors are subscribing to the belief that ‘companies that treat their employees, customers, communities, and the environment well, tend to perform well over the long term.’
To this end, firms that have implemented strong corporate governance structures and demonstrate transparency and accountability are becoming investment hot spots. It is expected that in 2023 this will continue to be a strong trend.
Needless to say, ESG-focused ETFs and mutual funds have not been left behind. They continue to be the sweetheart of investors who prefer a diversified portfolio while making a positive societal impact. Statista data indicates a surge of these financial instruments and predicts a continued upward trajectory well beyond 2023.
Predictive Analysis: ESG Investing in 2023
As we approach the start of a new year, the future of ESG (Environmental, Social, and Governance) investing emerges as a hot topic of discussion among investors and analysts alike. Guided by the principle of driving sustainable and financially rewarding investment decisions, ESG investing has carved out a niche for itself in the global investment landscape. However, as we move into 2023, this particular approach to investing could undergo significant transformations.
ESG investing typically involves the incorporation of environmental, social, and governance factors into investment decisions. Consequently, it’s much more than just about financial returns – it’s about making a positive impact on the wider world. A closer analysis of the trends could help us predict how ESG investing will evolve in 2023.
In the past decade, ESG investing has gained considerable traction. Its rise was fueled by growing public awareness about climate change, social equality, and corporate accountability. “Many investors are now eager to align their investment decisions with their personal beliefs and societal values,” says Mark Fulton, a prominent ESG investment researcher. This preference can be expected to further intensify in 2023.
As environmental issues are continually pushed into the forefront of public consciousness, we can predict an increased focus on the ‘E’ in ESG. This could drive investors to divert a significant portion of their investment towards green and sustainable ventures. It’s expected that this turn towards sustainable investing could become one of the defining trends of 2023.
In addition, technology will continue to play a significant role in shaping the future of ESG investing. Advances in data gathering and analysis tools have made it feasible for investors to access and analyse relevant ESG data. As a result, investors can make more informed decisions about where to put their money. In 2023, as these technologies continue to evolve, they might guide the way for a more data-driven approach to ESG investing.
Potential Macro Trends
The advent of ESG investing, or the Environmental, Social, and Governance criteria that influence investment decisions, has substantially altered the investment landscape. With the onset of 2023, it is crucial to anticipate potential macrotrends and evaluate their probable effects on the future of ESG investing.
From a macroeconomic viewpoint, various components might come to shape the course of ESG investing in 2023. Key among these potential macro trends is the global shift towards sustainable and renewable energy sources. This trend is attributable to increasing climate change awareness and pressure for companies to diminish ecological footprints. Such a trend, likely to accelerate in the coming years, could strengthen the “E” or the environmental attribute of ESG investing.
Another noteworthy macroeconomic trend is the increasing influence of technology in the ESG space. Technological advancements such as FinTech and AI-powered solutions can effectively monitor companies’ ESG performance and streamline the investment process. Investors and stakeholders could leverage these digital tools to make informed decisions, thereby intensifying the impact of the “G” or governance aspect of ESG investing.
The rise in social activism and legislation changes is another critical macro factor. As nations worldwide grapple with the aftermath of a pandemic, there’s an increasing focus on social justice, workforce ethics, and disparity issues. This focus may dramatically impact the “S” or social element of ESG, persuading corporations to prioritise social responsibility in their practices.
In the same vein, ESG investing in 2023 may be influenced by potential geopolitical shifts. The role of international relations in determining climate action plans can’t be understated. The collective effort of countries in executing global climate agreements can foster a promising investment scene for ESG-focused projects and companies.
The analysis of emerging markets presents yet another compelling prospect. These markets, buoyed by economic growth and augmented consumer activism, might stimulate enhanced commitment to ESG principles. Such a scenario could provide an attractive avenue for investors keen on aligning their portfolios with ESG criteria.
Regulatory Impact on ESG Investing
The regulatory landscape concerning ESG (Environmental, Social and Governance) investing may undergo significant changes in 2023 as policy makers worldwide continue to push for a more sustainable global economy. These anticipated regulatory amendments have the potential to redefine the future trajectory of ESG investing.
One of the anticipated changes is in the scope of disclosure regulations. Policymakers are expected to advocate for more comprehensive and standardized ESG disclosures from corporations. This could provide ESG investors with a clearer, more holistic view of the companies they invest in, aiding them in their decision-making processes.
Investor outcome for transparent and comparable ESG data is critical. “Transparent and comparable information are key to enable investors to identify sustainable investment opportunities and manage relevant risks” as stated in a report published by the European Securities and Markets Authority (2020).
Another anticipated regulatory shift concerns the definition and classification of sustainable investments. There’s an ongoing debate about what constitutes ‘green’— i.e., how investments should be categorized based on their environmental impact. The European Union has already initiated changes in this regard, rolling out its taxonomy of sustainable activities in 2020. In 2023, other global players might follow suit, providing investors with more precise classifications for sustainability.
Potentially, regulators could introduce mandatory ESG risk assessment requirements for financial products and services. This could catapult ESG factors from being ‘good-to-haves’ to ‘need-to-haves’ in financial decision making.
However, the potential impacts of these regulatory changes need to be contextualized. The effectiveness of these impending regulations will depend on how closely they align with market trends and investor behavior. While regulations might push for heightened ESG incorporation, their impact would be minimized if not backed by investor demand.
Environmental Regulations
The year 2023 stands on the horizon with a promise of significant changes across various sectors. One area that’s generating substantial interest is ESG (Environmental, Social, and Governance) investing. As we project into the future, we can anticipate meaningful transformation in this field, largely driven by evolving environmental regulations.
While it’s challenging to predict with certainty, informed analysis provides actionable insight into potential trends and shifts in this realm. Let’s delve into an examination of anticipated regulatory changes and how those might shape the landscape of ESG investing.
The Environmental Factor is one of the three pillars of ESG investing and is predicted to undergo some notable revisions. Governmental bodies worldwide acknowledge the crucial immediacy of addressing climate change, with tougher regulations anticipated to combat its detrimental effects. Industries across the board, notably those with traditionally high environmental impacts such as energy and manufacturing, can expect intensified scrutiny and restrictive guidelines.
While these could impose challenges in the short-term, they effectively open up expansive rooms for opportunity. Companies compliant with stringent environmental guidelines may find increased appeal in the investment community, predominantly from ESG-focused investors. These forward-thinking businesses aren’t merely adhering to regulatory mandates but capitalizing on a cultural shift toward environmental sustainability.
Volatile environmental conditions and potential regulations also contribute significantly to financial risk. Organizations that anticipate and adapt to these shifting norms stand to gain both reputationally and financially. In essence, they’re reinforcing their ‘E’ in ESG, thus becoming more attractive to investors committed to responsible investing.
“The future of regulation is sustainability,” states John Hale, Head of Sustainability Research at Morningstar. He adds, “Companies that disregard environmental responsibility may face investor divestment and damage to their brands. On the other hand, corporations embracing sustainability and adhering to anticipated regulations stand to gain in the long run.”
Yet, it’s essential to remember that the impact of environmental regulations isn’t uniform. Varying degrees of adaptability, industry specifics, and geographical implications will all influence how these regulations reshape ESG investing.
Transparency and accountability, vital tenets of ESG investing, are another area likely to be impacted by upcoming environmental regulations. Companies will be mandated to give clearer accounts of their environmental footprint and efforts toward minimizing the same. This wave towards openness and information visibility further strengthens the case for ESG investing. As the curtain is pulled back on companies’ environmental practices, the investment community gains a more acute line of sight into which corporations truly align with their ESG values.
The scenario plan is complex, with intertwining factors and wide-reaching implications. However, with informed anticipation and strategic adaptability, the future of ESG investing in 2023, especially within an evolving regulatory environment, looks promising and rife with investment possibilities.
Social Regulations
In an evolving economic landscape, it has become increasingly apparent that the future of investing is entwined with Environmental, Social and Governance (ESG) factors. As we look forward to the year 2023, the role of social regulations emerges as a critical element in shaping ESG-focused investment strategies.
One of the crucial factors in evaluating the viability of such strategies is considering the potential social legislation and its perceived impact on ESG investments. To begin with, legislation is an essential tool that could shape not just investment decisions, but the overall market dynamics. In recent years, governments worldwide have shown an increased propensity to enact laws encouraging sustainable practices within the business sphere. Upcoming potential social regulations are now poised to further drive this shift, and 2023 will be a pivotal year in this regard.
For instance, issues such as workers’ rights, consumer protection, and racial equity are likely to remain at the forefront of social regulations. These factors are fast being recognised as pivotal considerations for any investment strategy, reflecting a larger shift towards stakeholder capitalism. Observing this trend, it’s plausible that legislation will be enacted to further cement these requirements, thus impacting ESG investments positively.
In addition, legislation advocating for greater corporate transparency on social impacts could also influence ESG investing. The focus on transparency hasn’t been this high since the advent of ESG investing. And, as it continues to rise, legislation creating more stringent disclosure requirements could further bolster ESG investment by providing investors with more accurate, comparable data.
However, while these advancements paint a promising picture, it’s critical to be cognizant of the challenges too. In order to be successful, ESG investment strategies must account for the potential various areas of social regulation. Not doing so could expose investments to significant risks, from potential penalties to reputational damage. As the renowned economist Milton Friedman said, “Only a crisis – actual or perceived, produces real change.” With this in mind, it’s crucial for investors and companies to anticipate these changes, and navigate their path wisely.
In this complex web of economic shifts and social legislation, the future of ESG investing in 2023 is not set in stone. Nonetheless, by closely monitoring the evolving spectrum of social regulations, investors can equip themselves to align with the tides of change and redefine the path of growth. It is this robust comprehension and nimble responsiveness to upcoming social legislations that will underpin the successful ESG investment strategies of the future.
Governance Regulations
The component of the ESG investing acronym that tends to get less limelight is ‘Governance.’ However, its significance cannot be downplayed as it encompasses the set of rules, practices, and processes by which a company is directed and controlled. Governance involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.
As we cast our gaze into 2023, we find an evolving landscape of governance regulations that will significantly impact ESG investing. Transparency will no longer be a ‘nice-to-have,’ but the bare minimum. Companies ignoring this wave of change risk losing their attractiveness in the global market. Legislation in 2023 will make it mandatory for companies to disclose their ESG policies, risks, and impacts. In some regions, this is already the case. For example, the European Union has implemented the Sustainable Finance Disclosure Regulation, mandating financial market participants to disclose ESG-related risks and opportunities.
Moreover, the future governing laws will enforce and ensure that companies incorporate ESG principles into their strategic planning. This integration will manifest stronger ethical considerations in corporate decision-making, prioritizing long-term sustainability over short-term profitability.
Advancements in corporate governance in 2023 won’t be limited to only transparency and strategic alignment. There will also be a push towards achieving gender and racial diversity at the board level. A study by McKinsey & Company demonstrated that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth. This underscores the potential that diversity holds in driving profitability and positively contributing to ESG performance.
Investors, likewise, are becoming progressively mindful of the governance aspect of ESG. Increasingly, they are seeking out companies actively responding to altering regulations, demonstrating transparency, and making tangible efforts to integrate ESG policies into their business strategies. The data backs these shifts too, with Gartner estimating that “by 2025, 75% of investment product communications will include ESG-related metrics or statements.”
The landscape of ESG investing, thus, is primed for a regulatory revolution come 2023. For investors, these shifting sands create both challenges and opportunities.
FAQ Section
In today’s interconnected and globalized world, Environmental, Social, and Governance (ESG) investing has not only gained momentum but is shaping the future of the finance landscape. ESG investing evaluates companies based on their environmental, social, and governance practices, alongside their financial performance.
What exactly is ESG Investing?
ESG investing is a type of sustainable investing that considers a company’s Environmental, Social, and Governance risks and opportunities to deliver competitive financial returns and positive societal impact. It’s no longer about merely avoiding bad actors and focusing solely on returns. Instead, the key idea is leveraging capital to drive positive change and ensure sustainable long-term returns.
Why is ESG Investing becoming more popular?
The rise in popularity of ESG investing is a reflection of a broader shift in societal norms. As more investors including the 36-year-olds become attentive to the global challenges like climate change, social inequality, and corporate governance, they’re seeking ways to align their investments with these values. Research also indicates that companies placing sustainability at their core are more resilient and likely to outperform those that do not.
What trends can we expect in ESG investing in 2023?
The future of ESG investing in 2023 appears vibrant.
- First, we anticipate a higher influx of capital into ESG funds due to increased demand from young investors concerned about societal issues. According to a Morgan Stanley study, “Interest in sustainable investing is now firmly rooted in the millennial generation, with as many as 95% interested in sustainable investing”.
- Second, ESG disclosure and transparency are likely to improve. As regulatory bodies worldwide embrace ESG reporting standards, companies will face more pressure to disclose their ESG data.
- Third, with advancements in AI and big data, the industry could use technology to screen investments, perform predictive analysis, and evaluate the ESG performance of companies more accurately.
- Lastly, we can expect to see the integration of impact measures into the traditional financial evaluation. That means, alongside the P/E ratio, debt-to-equity ratio, and other financial ratios, investors would analyze ESG ratings, carbon footprint, social impact, and more.
What is ESG Investing?
ESG Investing is an acronym standing for Environment, Social, and Governance. It is an approach to investing that takes into account these three key factors alongside traditional financial data when making investment decisions.
The ‘E’ in ESG, represents the environmental criteria, which examines how a potential investment opportunity might contribute or detract from environmental sustainability. This can cover a broad range of issues such as carbon emissions, water usage, waste disposal, and the company’s impact on natural resources.
The ‘S’ refers to social aspects, taking into consideration relationships with employees, suppliers, customers, and the communities where the company operates. A company with strong social criteria will display good labour practices, invest in human capital, respect human rights, and demonstrate a real commitment to Corporate Social Responsibility (CSR).
Lastly, the ‘G’ stands for governance and looks at the running of a corporation. This includes examining factors such as the company’s management structure, employee compensation, the realities of shareholder rights, and transparency in all of its operations.
ESG Investing has been gaining traction, with more investors understanding that these factors can have a significant impact on a company’s performance and long-term sustainability. Researchers at the Harvard Business School found that companies with strong ESG scores outperform their counterparts over the long-term, both in terms of stock market and accounting performance. This thinking aligns with the “doing well by doing good” philosophy, where companies that care about various ESG aspects are thought to be better positioned for success in the modern business environment.
It’s desirable to take note that a comprehensive ESG investing approach goes beyond simply avoiding companies with bad practices. It is about proactively investing in companies that are leaders in managing environmental, social, and governance factors. Hence, ESG investing is not just about ticking boxes but making strategic investment decisions that help generate long-term value and bring about real change.
So, when we talk about the future of ESG investing in 2023, we are engaging in a conversation about how sustainability and ethical considerations are set to shape future investment strategies. Investment in companies with strong ESG credentials is arguably the future of the investment industry.
Investor should be aware of the importance of ESG factors and consider their impact when making investment decisions. ESG investing is a method that joins the pursuit of financial returns with a long-term commitment to sustainable, ethical practices. The relevance of ESG investing will only grow in 2023 and beyond. ESG investing is not just a transient trend, but a robust investment philosophy that is redefining the future of the finance industry.
What Can Influence ESG Investing in 2023?
The landscape of ESG investing is rapidly changing, affected by numerous factors predicted to take centre stage in 2023. A significant shift in this area doesn’t come as a surprise, given that environmental, social, and governance issues are leaping to the forefront of public attention.
Firstly, the “E” of ESG — environmental factors, are anticipated to continue shaping investment trends in 2023. With growing global conscientiousness about climate change and sustainable development, greater emphasis will be placed on companies demonstrating a strong track record in environmental stewardship. Therefore, businesses displaying robust carbon reduction strategies and innovative ‘green’ initiatives are likely to attract more ESG investors. Researchers predict that more than ever before, stringent environmental policies and practices will become paramount in determining a company’s investor attractiveness.
Secondly, shifts in social factors may have a substantial effect. In 2023, we expect to see a deeper integration of social aspects into corporate strategy, which in turn will influence ESG investment. Topics such as fair labor practices, gender equality, and diversity among others will dominate conversation, thereby driving ESG investment decision-making. This social consciousness trend is likely to push ESG-focused investors towards companies that excel not only in profitability but also in their commitment to social impact.
Postbed by the events of 2020-2021, corporate governance has been in a sharper focus. Many investors are scrutinizing how companies conduct business and their hierarchy. Strong corporate governance – a clear ethical framework, transparent decision making, and responsible business actions – will likely be a major condition for investors. A company’s stance on governance could affect its ESG investing appeal considerably in 2023.
Lastly, and substantially, regulations and policies on the horizon for 2023 are set to have an impact. Regulators are looking to adopt more aggressive stances on ESG factors. More stringent disclosure requirements surrounding ESG metrics from businesses could be implemented. This means companies might need to be exceedingly transparent about their ESG practices to attract and maintain investments.
While maintaining a seasoned investor’s outlook, these factors, among others, will shape and influence the future of ESG investing in 2023. Investors and companies alike should therefore strive to not only remain watchful of these evolving trends but take proactive steps to adapt to these shifts. This perspective mirrors thoughts of researchers who emphasize, “Investors are no longer just interested in the financial returns they receive, but the impact their investment makes on society, and the planet.“ Lubber, M. (2022) ‘Investors’ New Climate Calculus’, Management Journal, 2nd Edition, Oxford University Press, UK.