NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, August 5, 2019

By Kristen Haunss

Asset managers are increasingly making sustainable investment decisions that reflect their own corporate values and those of their investors, but are still under pressure to deliver competitive returns as the market continues to develop and implement environmentally friendly principles.

Many of the largest money managers including Neuberger Berman, BlackRock and PIMCO have dedicated environmental, social and governance (ESG) guidelines for their own investments, and are also balancing requests from their investors, including pension funds, endowment and family offices, to limit investments in industries including gun makers, fossil fuels and healthcare.

Asset managers face dilemmas in implementing ESG guidelines as to where to draw the line on sustainable values, as green lending principles continue to gather momentum in the institutional world.

Photo courtesy of Min An.