He says: “Given the origins of Covid-19, there has been a distinct focus on the sustainable aspects of the food supply chain recently, which is driving opportunities in stocks in this area.
“In addition, climate change continues to threaten the global economy and this has led to an increased focus on renewable energy infrastructure.”
Mr Tanner suggests that renewable infrastructure funds are a good proposition because the government’s target of net zero emissions by 2050 is driving investment in this space.
He adds: “Though renewable energy is now a mature and well-understood asset class in its own right, the growth potential is still very large.”
Gemma Woodward, director of responsible investment at Quilter Cheviot, says the business prefers to focus on how asset managers incorporate ESG into their investment process.
She says: “Part of our fund research team’s remit is to understand how the different managers we invest with approach stewardship and ESG integration. While at a house level there may be a process in place, we need to understand how that works both on a team and fund basis.
“When it comes to identifying investment opportunities for our sustainable or positive change strategies, the focus is driven by either the sustainable thematic approach or by due diligence in understanding how funds might fit within the positive change approach.”
Stephen Little is a freelance journalist
