Bridging the trust gap

We are still not seeing an alignment of capital and values where help is needed most – the world’s least developed countries, writes the UNCDF's Esther Pan Sloane

BlackRock recently announced it will require its portfolio companies to make climate-related risk disclosures, while Goldman Sachs said it will refuse to take companies public if they have all-male boards. And the CEO of Bank of America, which manages $3trn (£2.2trn) in investor assets, has said “all investors are impact investors now”.

See also: – Putting ‘stupid money’ to good causes

These actions reflect the zeitgeist: the global impact investment market is booming. In 2019, it was worth more than $50bn, with more than $20bn invested in ESG mutual funds and ETFs alone, a four-fold jump from 2018. These funds are managed by more than 1,340 organisations worldwide.

It is evident that, around the world, businesses, institutional investors, wealth managers and retail investors are moving to align their capital with their values.

Read the full comment in ESG Clarity’s January digital magazine.


Natalie Kenway

Natalie is editor in chief at MA Financial covering ESG Clarity, Portfolio Adviser and International Adviser. She was previously global head of ESG insight for ESG Clarity and has been an investment journalist...