In today’s global world, ESG standards are becoming a significant force for investment decisions, corporate strategy and the global economy. RBC Capital Markets’ U.S. Equity Strategist Sara Mahaffy finds that the world of sustainability is rapidly evolving in the “RBC Global Environmental, Social and Governance Virtual Conference; Complete Conference Review.”
On 16th September 2020, we hosted our third session of the series focused on sharing institutional knowledge and awareness of how ESG factors influence the investment decision making process. Moderated by Lindsay Patrick, Head of Sustainable Finance, RBC Capital Markets, the panel included Vinay Shandal, Managing Director & Partner at Boston Consulting Group and Sara Mahaffy, US Equity Strategist & ESG Specialist at RBC Capital Markets who provided practical advice to help companies positions themselves to access this growing pool of capital.
Beneficiaries of growing inflows into ESG, many are also high-quality companies with strong moats.
Companies are starting to view ESG more holistically, and that also means thinking beyond sustainability in an environmental sense. While climate risk is still rightly high on the agenda, the COVID-19 pandemic has highlighted the importance of social and governance issues for many companies.
Back in 2017 and 2018, I did not notice a huge difference in terms of dedicated ESG funds compared to traditional assets, but in 2019 I started to see a gap emerge as dedicated actively managed ESG funds started to outperform more and it has persisted in 2020.