Morgan Stanley's Sustainable Investment Themes 2016
justmeans.com| December 15
By Audrey Choi CEO of Morgan Stanley’s Institute for Sustainable Investing
Sustainable investing is gaining momentum and increasingly taking its place at the center of mainstream investment conversations. We believe we are at a critical moment of sea change where integrating environmental, social and governance (ESG) considerations into quality investment strategies is not only considered acceptable as a part of sound investment management, but is viewed as core to prudent investing and value creation. Growing interest by individual and institutional investors is driving the financial services industry to create ever more numerous and rigorous investment tools. The focus is on utilizing top-drawer traditional investment techniques combined with ESG considerations to provide improved sustainable investing options for investors to consider. As this virtuous circle continues, we believe strong growth in sustainable investing will continue this coming year and beyond as this increasingly sought-after approach is utilized by mainstream investors.
We see three trends in particular to be of special importance: First, mainstream financial service firms and investors will increasingly look to integrate environmental, social and governance considerations. Research has continued to proliferate, demonstrating more and more proof points that integrating ESG factors into investment decisions does not mean a sacrifice in financial returns. An important milestone came in October 2015 when…read more