Bridging the ESG Strategy Gap
How Europe might help the US bridge the gap on ESG investor education, industry regulation, and asset management.
- US investors tend to focus on the ethics and activist components of sustainable investing, whereas European investors think more broadly about ESG integration and thematic sustainable investing.
- US and European investors and financial professionals can learn from each other about what it means to invest in a sustainable future.
- Evolutions in education, regulation, and investment strategies continue to bridge the knowledge gap and improve the breadth of ESG strategies available to both institutional and individual investors worldwide.
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices, therefore a portfolio's universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.
Mirova is operated in the US through Ostrum Asset Management U.S., LLC.