Despite COVID-19 uncertainties remaining, we’re sticking to our ESG plans as we adapt to the ‘new normal’.
2020 was set to be the year for ESG action. The prediction was that the primary focus would remain on the ‘E’ of ESG – the environment – and climate change specifically.
It’s not hard to dispute this: the physical impacts of climate change have become more visible than ever and we were beginning to see a clear direction of travel from politicians on climate change policy and regulation. Among the general public, plastics (and their impacts on biodiversity) became a headline topic, leading people to take personal action. Social unrest and rising populism stemming from concerns about human rights also became topical issues influencing investors, raising the profile of the ESG ‘S’.
Then came COVID-19. The pandemic has caused unprecedented levels of economic and societal harm across the world. Unsurprisingly, we have seen significant disruption to pre-agreed ESG plans and priorities as governments, companies, individuals and society as a whole work to respond and adapt to the new operating environment.
While there is a danger that ESG momentum will slow as the crisis-management mentality continues to take precedent, we believe the pandemic also presents the opportunity for action to be accelerated.
We would argue that COVID-19 provides the perfect illustration of why we need to tackle climate change – its disruptive impacts will be world-changing if not addressed – and how quickly governments and society can act in the face of a true public emergency.
Our 6 ESG priorities for 2020
The uncertainty around COVID-19 means it is difficult to know how much we can realistically achieve this year, but we have decided to stick to our plans, knowing adjustments may be needed as the year progresses.
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1. Enhance investment choice
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2. ESG investment-related policies
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3. Embed ESG into credit research
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4. Develop ESG tools to enhance investment team support
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5. Strengthen ESG IT data infrastructure
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6. Embrace wider industry collaborations and engagement
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There is much still to do, but we maintain that 2020 remains important in setting the tone for the level of ESG ambition for the decade to come.
Click here for more information on ESG at BlueBay.