What is the role of a public firm in a free market? Traditionally, the answer would be to maximize value for its shareholders.

This still holds true, but there are now a much broader range of considerations for firms to meet, such as environmental, social, and governance (ESG) factors. ESG factors have developed to a point where they are driving inflection in supply and demand. We believe that these factors will be influential on all investments going forward.

This paper seeks to explore the constituent parts of ESG, and more importantly, how they are changing. We want to highlight the importance of ESG in today’s markets. It is reshaping the market today – informing investment decisions and impacting recruiting and retention strategies. We’ll also look at how asset managers can capitalise on a nascent field, whose growth will continue to accelerate in the UK, Europe and beyond.