COP26: ESG in America

COP26 takes place this week in Glasgow and we asked industry experts what they were expecting from the event.  Mark Sherlock, head of US equities at the international business of Federated Hermes, says many Americans are aware of the urgent need for action.

American business and the notion of the ‘profit motive’ have been inextricably linked for as long as anyone can remember. It is therefore perhaps unsurprising that individuals and corporates have been suspicious of ESG as a lens through which to judge the health of a business.

It is hard to argue against better corporate governance – and social benefits also accrue when management is encouraged to focus on its people. The environmental considerations are perhaps the most controversial, yet arguably the most important. Short-term benefits are not always obvious and yet a significant majority of Americans believe that urgent action is needed to avoid catastrophic changes to climate and habitat over the longer term.

Adoption of ESG is perhaps better seen as a journey rather than an event. A steady pace of progress can still be achieved, while minimising the immediate threat to livelihoods and allowing for a period of adjustment.  The important point here is that we take the first steps in turning the single point metric of profit into a more balanced and sustainable assessment of businesses.

© 2021 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST