"Several things provide impetus for that shift. Regulation is key but there’s also greater recognition that investing responsibly makes financial sense as ESG risks can have a material impact on returns. Also, individuals are more aware of the challenges the world faces and are keen to do their bit through investment choices – avoiding investing in polluting companies for example.
"At BMO, responsible investment sits at the centre of everything we do. Consideration of ESG risks is integrated into our investment processes and we’re aware that sustainability related mega-trends, such as a transition away from fossil fuels, provide some interesting investment opportunities."
Niven adds: "From a multi-asset perspective, it’s important to apply consistent parameters across all asset classes – we operate within the same ‘avoid, invest, improve’ ethos."
David Thorpe is special projects editor at FTAdviser
