The journey of integrating sustainability and ESG into the business world began a decade or so ago and will continue forward for some time. Here Jason Jay, Director of the Sustainability Initiative at MIT Sloan and one of EFGAM’s Future Leaders panellists discusses the progress that has been made in ESG investing and what he believes the future may hold.
Jason sees three hurdles which need to be overcome for a more widespread adoption of sustainable and responsible investing.
A summary of a presentation Jason gave at our annual EFGAM Knowledge Exchange in January 2019, these 3 hurdles can be summarised as:
Mental models - moving from mental models built on quantitative factors such as risk and return, portfolio optimisation and fees to a much wider and comples set of factors.
Data - Availability and trustworthiness of ESG data, to provide the basis for high conviction decision making
Impact - Ensuring that our actions do more than make us feel good, but actively and significantly drive real change.