Not only did it reveal that there was no financial trade-off in the returns of sustainable funds and traditional funds, but it also found that sustainable funds experienced a 20 per cent lower market risk than their traditional counterparts.
Raising public consciousness, followed by action, is key to positive change in society. Growing public opinion has played a major role in improving social health, wellbeing, and inclusion.
Huge progress has been made socially in terms of diversity, equity and inclusion, as evidenced by improvements in disability rights, gender and racial equality, as well as greater awareness of equality in pay and opportunities.
People prefer living in societies that are inclusive, promote heath, wellbeing, fairness and opportunity. When the public are given the means, the motive and the potential to improve society, they step up.
It is possible to invest in companies that are making a positive change to society in the longer term while also generating alpha.
So, while more considered and thoughtful investments can satisfy a desire for positive societal difference, investors can also reap a financial reward.
Investors are shifting their focus from shareholder value in a purely financial sense, to stakeholder benefit in its widest sense.
Intentional investing is set to become a more significant part in portfolio allocations, playing an important role in driving corporate behaviour.
Lauran Halpin is head of impact equities at Martin Currie (part of the Franklin Templeton group)
