In the (we hope) soon-to-be post-Covid world, social concerns will be elevated in the sustainable investment debate.
Looking five years ahead, we believe the growing awareness of the systemic nature of social issues should ensure that they get the prominence that climate change receives today. It is an opportunity for business to show leadership and innovation – especially in a world where so much of government policy has been outsourced to the private sector.
The activism of shareholders needs to be built upon and turned into engagement, with a forward-looking perspective on a multi-stakeholder world. The data will follow and should be no excuse for inaction. Behaviour is visible and shapes outcomes more than reporting will ever do. The prescient corporation will see that effective stakeholder management is about ensuring future relevance.
Andrew Parry, head of sustainable investment, Newton Investment Management.
Doc ID: 646450