by Guillaume Mascotto, Vice President, Head of ESG and Investment Stewardship
There’s no doubt COVID-19 is altering global societies and economies. Yet the virus is affecting investment theory, too. There is a growing consensus among many investors that the so-called neoclassical economic theory must evolve past the sole focus of maximizing firm profits.
These investors assume what is good for the long-term viability of our economic system and society will also lead to good stocks and good companies. As a result, investors are increasingly measuring company performance by more than just financial profit and loss. While key trends were already altering the investment management landscape prior to COVID-19, we believe the virus’ escalation to a global pandemic will hasten the shift in mindset toward sustainable investing. This shift does not seek to splinter socio-economic development. Instead, it seeks to achieve a balance between environmental, social and economic considerations.
Click here to continue reading this article.