ESG resilience in an uncertain world
The crisis has revealed significant fragilities at the heart of our socio-economic system. But we can improve the economy’s robustness by de-emphasising efficiency, in favour of system resiliency. In investment markets, today’s steep capital market line encourages risk-taking. We find that medium-term market-implied returns for ESG equity indexes are at least as good as market-cap indexes. Investors can access ESG-friendly themes, which we anticipate will be structural beneficiaries of the move to “the resilient economy”, without giving-up expected returns.
In this article, we discuss how the new economy can be built about resiliency, thematic resilience of ESG in investment markets and return potential of ESG-friendly asset classes. To read the article in full, download
As the topic of sustainability has become even more essential to the investment world, the demand for solutions that have positive impacts are rapidly growing. By combining our experience in passive investing with our socially responsible investing expertise, we have launched the HSBC Sustainable Equity ETFs, designed to take a step beyond traditional sustainable ETF solutions.
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