Following the COP26 conference in Glasgow, many climate-conscious investors want to know how to match up with their values with their investments. The short answer is Environmental, Social and Governance investing — ESG for short — but there are plenty of questions about how “green” this really is.
Thirty-year-old Harri appeared on one of the first episodes of Money Clinic last year, and his decision to invest in ESG funds appears to have paid off — he’s made a decent return. However, he wonders how much is due to the underlying investment performance, and how much rests on the soaring popularity of ESG investments. With a record $3.9tn now held in sustainable assets worldwide, is this outperformance sustainable?
Podcast: Investing for a greener future
Claer Barrett meets up with Money Clinic listener Harri to find out how his ESG investments have performed. Listen here
Claer is joined by the FT’s Manuela Saragosa and Share Action’s Catherine Howarth who put ESG investing to the test, offering practical tips on how to make greener choices with your pension, Isa and become an activist shareholder — plus they debate how sceptical investors should be about “greenwashing”.
If you enjoyed this episode, check out five ESG themed episodes on the FT podcast Behind the Money. Want to be a future guest? Email us at email@example.com or reach out to Claer on Instagram and Twitter: @ClaerB.