Tackling the real root of the ESG problem

The combined AUM of global mutual funds with an ESG focus passed $1trn in October last year, rising by 60% since 2012, and 2018 saw 410 new launches in the space, according to Morningstar. But until recently the majority of firms tended to focus on the 'G'. Countless reports have shown managers are engaging more with the boards of their holdings, increasingly challenging them on issues such as diversity, executive pay and board effectiveness, which has been hugely beneficial. But while ensuring companies are implementing appropriate governance within their business is crucial, not giv...