35 min read 1 May 20
Summary: The impact of COVID-19 has been significant in virtually every aspect of human life. A consequence of this is the way it is changing how we assess, value and engage with the companies in which we invest.
As active investors we are responding to the pandemic, asking new questions of companies in light of the fundamental changes it has brought to lives, businesses, governments and healthcare systems.
We have undertaken this detailed research to assess the interconnectedness of global factors such as population growth, unsustainable production and consumption, resource scarcity and climate change with the emergence of communicable diseases.
The findings of this research have highlighted a number of areas for consideration by investors, including:
These and other questions are fundamental to our approach to integrating environmental, social and governance (ESG) factors into our investment decisions.
We believe that a deeper understanding of the human and environmental influences on the planet allows us to make better informed investment decisions, including identifying solutions to the challenges faced by society.
This research highlights a number of interlinked sustainability challenges, and how these relate to our investment processes.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.