Despite transformative climate policies and a reversal of performance headwinds, media outlets instead focused their attention on the politically charged ESG rhetoric in 2023. While this is sure to persist–more than 75 countries will hold national or major regional elections this year–we remain tethered to the view that momentum for sustainability-oriented investment among corporations as well as investors continues to build beneath the surface. ESG risks impacted all corners of the market and society last year, from prolonged drought and extreme weather to inadequate governance and unsafe working conditions. As we turn to 2024, we remain focused on identifying businesses and management teams mitigating their exposure to these risks and taking concrete actions to benefit from the underappreciated secular shift in sentiment toward climate and human capital.

To read our full Sustainable Investment Update, please contact us at [email protected].