Investment trends shape our world and the future is increasingly being influenced by environmental, social, and governance (ESG) principles.
ESG and how it will shape the economy of the north-east region is the hot topic under the spotlight at the third annual Press & Journal Virtual Business Breakfast of 2021 on Thursday.
Bettina Edmondston, the global investment director of Saracen Fund Managers, has been revealed as the final speaker to join the free online event.
She joins Bob Ruddiman, head of energy at Burness Paull, and Barry O’Neill, investment director for Carbon Financial Partners, who together will deliver their insights as well as address audience questions in a highly topical forum that lasts just an hour.
Boutique investment
Saracen Fund Managers is a boutique fund management business based in Edinburgh with over £100million assets under management and acquired by Assetco, an acquisition vehicle led by Martin Gilbert.
Ms Edmondston believes that ESG is having an important effect on boardrooms across the world, including major oil companies such as BP and Shell which have recently tangled with activist investors, who are now more often than not backed by institutional investors.
This approach – in which companies are supported to meet ESG criteria – is becoming more important.
We don’t want the best-ranked ESG companies. We want somebody who can prove or show over time they are improving.”
Bettina Edmondston
She said: “We have a pragmatic approach to ESG. We don’t exclude anything because if you want change you have to talk. That is one big thing for people who say they will never invest in oil and gas or they will never invest in tobacco. Then you can’t come to the table and try to change these companies.
“This is exactly what we do. We don’t want the best-ranked ESG companies. We want somebody who can prove or show over time they are improving.”
Barry O’Neill, investment director for Carbon Financial Partners, an national advice firm, advises clients on their investments as part of the financial planning process and increasingly sees demand for ESG moving into the mainstream. He notes that ESG has been in the background for a long time and has its roots in “ethical”, “socially responsible” or “sustainable” investing.
Breaking into the mainstream
“We are definitely seeing increased interest in ESG investing. It’s been heralded as the next big thing for ages and is finally breaking through into the mainstream.
“The issues addressed by ESG are now pervasive across society. We ask the big searching questions of our clients about their values and the choices they make in their everyday lives – what is important to them, do they recycle, do they drive an electric vehicle, what kind of planet do they want to leave behind for future generations?
Globally, ESG assets are on track to reach $53 trillion (£37.6tn), up from $37.8 trillion by the end of this year. Growing numbers are applying ESG factors as part of their analysis process to identify material risks and growth opportunities.
The P&J Business Breakfast: ESG and the climate-positive city, sponsored by Burness Paull, takes place Thursday, July 1 and will be chaired by Press & Journal business editor, Erikka Askeland.
The breakfast event runs from 8-9am.
To register for free, fill out the form below.