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Covid-19 could shape ESG investing “for years to come”

coronavirus_esgThe Covid-19 pandemic means investors are more likely to engage with companies about the world’s biodiversity loss and on supply chains, claims Frankfurt-based asset manager DWS.

Rapid urbanisation and rising income and population levels are reasons why more research will be carried out into links between climate change and biodiversity loss, says the firm. 

Overall, the area of ESG investing will see more emphasis put on the social aspect in the wake of Covid-19, a DWS expert claims. 

Michael Lewis, DWS head of ESG thematic research, claims biodiversity is a significant cause of the crisis that will prompt the change of emphasis from asset managers. 

Lewis said the crisis “has its origins in biodiversity loss, rapid urbanisation, rising population levels and as humans come into closer contact with animals through deforestation and bushmeat markets”. 

The report adds that Covid-19 also strengthens the strategic importance of sustainable and impact investments in emerging markets due to the challenges faced by these countries in self-isolating, sanitation and working from home, making it a struggle to tackle the crisis effectively, the study claims.

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