,"The ethical investing movement is growing rapidly as investors become more aware of the environmental, social and governance (ESG) risks in ..." The leader of one of the most powerful and profitable investment asset firms in the world was grilled by his former 'sustainable investing' colleagues recently in a Catholic Church study. The Church says underlying factors of ESG investing “resonate” with the aims of Catholic teachings. Ethical investment provide the opportunity to apply their moral beliefs to the company's Retirement Planning and other accounts.
First, investors overall believe that ESG/ethical investing is profitable. In 2021, 69% of frequent investors classed ESG investment as “very important” or “important”. Core Asset Management, a global asset manager, recently released a research paper exploring the rise of ethical investing and its impact on the financial sector. The paper demonstrates the strong correlation between ethical investing and financial performance.
Misselling scandals leave the burgeoning ethical investing industry in crisis. As ESG moves mainstream, businesses face a reckoning over their green credentials and are being forced to clean up their act. The proposed new sustainable labels should help ethical investors back their investment and give investors greater confidence in their ethical investment decisions.