Published: May 2, 2024

It was great to contribute to the LGPS Masterclass on Sustainable Investing, which featured our Investment Director for Responsible Investment & Engagement, Patrick O’Hara was a key contributor.

The masterclass featured in-depth discussion about sustainability in the context of institutional investing, with a focus on emerging markets. It touched on various themes such as ESG (Environmental, Social, and Governance), integration, holistic systems thinking, regulatory developments, and the role of fund managers in ensuring sustainability. It also explored the impact of sustainable investments in emerging markets and the importance of transparency and pragmatism in addressing sustainability challenges.

The conversation emphasised the complexity of sustainability in investing, highlighting the need for a holistic approach to evaluate risks and opportunities. It underlined the critical role of transparency and clarity in defining sustainability and stressed the importance of diversified portfolios, not only to maximise returns but also to contribute to a more sustainable world.

Key Takeaways:

• Holistic Systems Thinking: Sustainability requires a comprehensive approach, considering all aspects of a company’s operations, from its environmental impact to its social responsibility and governance practices. This approach helps in identifying and addressing potential risks and trade-offs associated with sustainable investing.
• Transparency and Clarity: For fund managers and institutional investors, being transparent and clear about their sustainability goals and how they intend to achieve them is crucial. This openness allows for better understanding among stakeholders and helps maintain trust in sustainable investment practices.
• The Role of Emerging Markets: Emerging markets present significant opportunities for sustainable investing due to their growth potential and the impact that sustainable investment practices can have on corporate behaviour and impacting sustainability outcomes across the full spectrum of ESG issues. However, these markets also present unique challenges, requiring careful analysis and a balanced approach to ensure positive outcomes without undermining financial returns.

You can watch the full session by clicking the following link; LGPS Institutional Masterclass