How to have a positive ESG impactAt Aberdeen Standard Investments, we are responsible investors. As such, we ensure environmental, social and governance (ESG) considerations are embedded in everything we do. Our goal is to make a difference – for our clients, society and the wider world.
A call to actionThere are numerous ESG-related investment options for investors, from ethical to SRI (sustainable and responsible investing). More recently, we have seen the emergence of impact investing and portfolios that are directly aligned with the United Nation’s 17 Sustainable Development Goals (SDGs).
The SDG’s are designed to help governments and regulators meet the most pressing global challenges. The task is a sizeable one. According to the UN, it will require around $5-7 trillion annually to meet its Agenda. As a result, the SDGs have rapidly become a ‘call to capital’ for investors and asset managers alike.
Impact investingImpact investing involves investments that seek to have a measurable, positive environmental and social impact alongside aiming to generate a financial returns. European companies are an attractive opportunity for impact investing. Many were early adopters of the SDGs, incorporating them into their strategies and business practices. A host of companies have strong sustainability credentials and are global leaders on social and environmental issues. From across the region, there are numerous companies whose technologies, products, services and business models contribute to positive change in areas such as healthcare, education, agriculture and energy. This is creating a raft of opportunities for active investors.
The SDGs in Asia and emerging marketsAnother area of particular focus for us is Asia and emerging markets, where the list of challenges is extensive. According to Brookings, incremental spending needs in low and lower-middle-income countries may amount to at least $1.4 trillion per year to meet the SDGs.