Responsible Investing

John Hoeppner, is Head of US Stewardship and Sustainable Investments at Legal & General. which is a major global investor, with total assets under management of $1.4trn. John outlined what Responsible Investing (also called Sustainable Investing and Environmental Governance) means and how this investing strategy is evolving and rapidly growing in the world's market place.

The basic principles, John explained, are Environmental, Social and Governance (ESG).  These are the factors used to evaluate companies and countries on how far advanced they are with sustainability.  This market is driven by public pressure to incorporate ESG in investment strategies.  Public policy is responding and momentum is building.
Financial analysis has shown that high-sustainability firms tended to have a higher degree of long-term planning. High-sustainability companies tend to perform better and so, in theory, those who invest in them can expect to receive higher financial returns. Financial advisors are embracing this model as well. Companies can be influenced to become more sustainable due to the large holdings of certain investors, like Legal and General.