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The global momentum around responsible investment is driven by:
recognition in the financial community that ESG factors play a material role in determining risk and return;
understanding that incorporating ESG factors is part of investors’ fiduciary duty to their clients and beneficiaries;
concern about the impact of short-termism on company performance, investment returns and market behaviour;
legal requirements protecting the long-term interests of beneficiaries and the wider financial system.
pressure from competitors seeking to differentiate themselves by offering responsible investment services as a competitive advantage;
beneficiaries becoming ever-more active and demanding transparency about where and how their money is being invested.
value-destroying reputational risk from issues such as climate change, pollution, working conditions, employee diversity, corruption and aggressive tax strategies in a world of globalised and social media.
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