“Both investors and consumers are assigning increasing value to companies that transition fastest and understand the need to develop new, more sustainable business models,” she says.
“They risk losing market share to those that are able to operate in a carbon-constrained world. Understanding a company’s exposure to future sustainability challenges will help to identify those failing to transition and where investment could be misplaced.”
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Ultimately, however, as Mr McAndrew says, while ESG investing can help identify both future winners and losers, there is no “silver bullet” that can future-proof a portfolio in its entirety.
Stephen Little is a freelance journalist
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