The shift in mindset of what a more sustainable world will mean is still to be fully played out, as we are very much in the foothills of the climb.
Kelly Prior, investment manager in the multi-manager team at Columbia Threadneedle Investments, says: “I believe all asset classes are adjusting.
"To lend money to an unsustainable company carries over an increase in risk as these players are increasingly shunned, consequently meaning both refinancing and business models will become more troublesome in general.
“We are at a pivotal point in investments where an increasing number of firms are being considered as sustainable, having shed the negative externalities that they once produced. In an equity world, this will impact future earnings potential.
"Nonetheless, the shift to a more sustainable focus will not guarantee a wholesale shift in structure.
“Instead a more inclusive approach will be more beneficial for the long term when looking at all asset classes.”
Ima Jackson-Obot is deputy features editor at FTAdviser
