Investments  

Ethical investing is having its moment

This article is part of
Guide to ethical investing

“Simulation software has, to date, been used in limited applications because of its cost and complexity. Ansys has engineered a product that is easier to use and more accessible.

“The idea is that you can simulate what a product will look like and how it will behave before it is built, thus saving time and money.”

Other key developments, according to Mr Harrison, include demographic shifts and continual improvement in global health standards, which are a significant opportunity for many medical technology companies.

“Diasorin makes diagnostic equipment for a number of niche diseases and conditions.

“Management are clear on their focus on niche areas. Like with many of our other companies, it invests significant capital in developing its own products, which helps drive new orders and grow market share.”

In addition to this, there is also growing evidence to suggest that companies with higher ESG scores tend to have a lower cost of accessing capital leading to higher profits.

Steve Kenny, commercial director, Square Mile Investment Consulting and Research, explains that he is seeing greater use of ESG to improve the selection and ongoing monitoring of securities, and the funds where an ESG approach is used covers the spectrum of asset classes and vehicle types.

 “While there has been a prolific increase in the number of funds which have explicit ESG objectives, we are increasingly seeing funds which are not mandated to follow a responsible investment process but are nonetheless integrating ESG as a hygiene factor in recognition of the positive impact it can have on corporate performance and risk mitigation.”

craig.rickman@ft.com