Investors don't need to worry that using sustainable strategies will cost them money, says Blackrock investment specialist Blair Hannon.
"There is certainly a common view that there's a return sacrifice when it comes to ethical investing and at BlackRock, we just disagree," Hannon says. "We just don't believe that by investing sustainably, you have to sacrifice returns."
The pandemic was a key test for the company's sustainable investments, and they passed with flying colours, Hannon says. Longer-term data reported since mid-2018 back the argument.
In this short video, Hannon spells out how ESG investing — particularly the G of governance — can actually improve financial resilience. Transparent, high-quality data is a critical component.
He outlines how Blackrock, partnered with MSCI, uses a controversy score to rate the activities of companies worldwide to ensure they're delivering on their promises.
