ESG: Development in Investment Activity – What’s the Trend?

Published 18 December 2020


Below, please find an attempt to outline the spectrum of ESG commitment from investors.

At the far left, we have the traditional investors with a ‘profit only’ focus and with limited or no focus on ESG factors. At the far right, we have the philanthropists, who are prepared to accept material financial tradeoffs.

We see a movement from the traditional investor to investors who not only start focusing on ESG risk mitigation, but who focus on ESG opportunities as well. While most investors are still working within the field of ESG risk mitigation and/or ESG opportunity seeking, we see more investors becoming impact aware and start moving towards the right end of the spectrum. These investors are referred to as impact investors and most of these continue to have a ‘finance first’ focus.