Funds Industry Report - Flipbook - Page 23
Sean Hawkshaw KBIGI
conditions generally to reect this. Position-
the subsequent Brexit mess) and we have
ing Ireland as a centre for green nance will
seen good support from Leo Varadker, Rich-
bring plenty of challenges. The EU will shortly
ard Bruton and some other government
be introducing a ‘taxonomy’ on responsible
representatives
investing which I would broadly welcome –
themed events over the past year.
at
various
sustainability
but at the same time we need to be careful
on how it is implemented because limita-
This type of political support is to be
tions can easily become constraints and
welcomed especially given that the time
standards should not limit progression. The
frame in which climate related risks are
positive
standardised
expected to materialise are some years (but
approach and most importantly a common
not too far) down the road and certainly
language to describe this evolving area will
outside the normal election cycle. However,
help promote awareness and understanding.
the real ‘muscle’ is not coming from govern-
It will also limit the ability of rms to ‘green-
ments or regulators and is much more
wash’ whereby they take shortcuts to burnish
bottom up driven. A highly respected survey
their ESG credentials through clever market-
from the US SIF organisation last year looked
ing.
at the reasons why US investment managers
is
that
a
more
were taking ESG factors into consideration
We need to see governments (including our
and 82% said it was client demand and 22%
own) giving the right signals to both compa-
regulatory compliance6.
nies and investors – for example they could
insist on more disclosure of carbon footprints
of public pension funds and sovereign wealth
Advice For People Working In The
Funds Industry
funds. There has been some examples of top
down leadership – Mark Carney’s ‘Tragedy on
Things are changing. Look to position your-
the Horizon’ speech5 f rom a couple of years
self where the puck is going – not where it is!
ago was inuential (although largely lost in
Sources:
1 https://citywireselector.com/news/green-bonds-cross200bn-milestone-in-record-issuance-year/a1285951
2 Global Sustainable Investment Alliance. 2018 Global Sustainable Investment Review.
3 Bloomberg Intelligence, April 04,2018.
4 https://www.ibe.org.uk/userassets/surveys/2015%2002%20mogan%20stanley%20-%20sustainable%20investing.pdf
5 Mark Carney: Breaking the tragedy of the horizon – climate change and financial stability Speech by Mr. Mark
Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at Lloyd’s of London,
London, 29 September 2015.
6 US Sustainable, Responsible and impact investing Trends 2018.
Disclaime:
KBI Global Investors Ltd. is regulated by the Central Bank of Ireland and subject to limited regulation by the
Financial Conduct Authority in the UK. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. The views expressed in this article are expressions of opinion only and should
not be construed as investment advice.
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