Talking Point  

What the next generation of ESG investment opportunities looks like

What the next generation of ESG investment opportunities looks like

The search for sustainable investment solutions is the next frontier for ESG investors, but will throw up many ethical dilemmas, according to Stephen Beer, vice chair of the Church Investors Group.

Beer, whose organisation manages about £21bn, said: “The next opportunities will overlap with the ’S’ of ESG but will present companies and investors with new challenges.

"Demographics and politics will combine to reduce inequality and potentially boost capital expenditure, but technological progress will present society with ethical questions which will be harder to incorporate into investment policies than the threat of climate change.

"The next opportunities in responsible investing will be taken by those who anticipate best how societies will prioritise values in response to these profound changes.”

He believes its important that investors are conscious of the risk of not being overly exposed to any one investment style or trend.

Jordan Waldrep, chief investment officer at Truemark Investments says that while sustainable investing does lead to a skew towards technology companies, there are other opportunities.

He said that while the opportunities in solar energy are well understood, it remains at an “early stage” in terms of its growth in the wider economy, and that represents an opportunity. 

david.thorpe@ft.com