Leaders discuss ESG challenges and the future of sustainable investing at the University of Toronto symposium
Anna Murray, the global head of sustainable investing at Canada’s Ontario Teachers’ Pension Plan (OTPP), has come to terms with the anti-ESG sentiment in certain investment circles, according to Top1000funds.com.
Speaking at the Fiduciary Investors Symposium at the University of Toronto, she acknowledged feeling “defensive” against this sentiment for years but now “very much welcomes it.” She believes it has sharpened focus on sustainability as fundamental to fiduciary duty.
In the US, responsible investment has become politically charged, with the Securities and Exchange Commission (SEC) staying climate-related disclosures by public companies amid legal challenges from Republican-led states.
Murray emphasised the need to evolve discussions beyond emissions intensity, considering it an imperfect, backward-looking measure. She hopes for a broader focus on identifying and capturing investment opportunities.
Hendrik du Toit, founder, and CEO of Ninety One, echoed this sentiment, stating that ESG considerations are now integral to modern investing. He highlighted international collaboration in ESG efforts, notably between the US and Chinese governments.
Despite the challenges, du Toit criticized the asset management industry for its poor handling of transition risk and underutilisation of capital for sustainable investments.
BNP Paribas Asset Management, managing $750bn in assets, has committed half to net zero objectives. Jane Ambachtsheer, the firm's global head of sustainability, sees the anti-ESG movement as evidence of their impact.
She noted the market pushback and pointed to the S&P Clean Energy index's poor performance as a challenge.
However, she stressed that sustainable investing is part of a diversified approach and highlighted their active stewardship, voting against 1000 management resolutions for inadequate climate reporting.
Ambachtsheer believes aligning with net zero goals and investor expectations is crucial to their commitment to sustainable investing.
