Capital owners and managers are increasingly leveraging environmental, social and governance (“ESG”) factors to pursue sustainable investment. For those fundraising, operating or investing in the U.S., three significant trends in ESG and sustainable investment are growingly shaping that practice.
21 Oct 2019 – Legal.Powerlist News Team
Capital owners and managers are increasingly leveraging environmental, social and governance (“ESG”) factors to pursue sustainable investment. For those fundraising, operating or investing in the U.S., three significant trends in ESG and sustainable investment are growingly shaping that practice. First, certain leading states are using their fiscal footprints and regulatory reach to influence and drive sustainable investing. Second, the U.S. federal government, which has been relatively reluctant to regulate in the space, now has a Congress that appears to be preparing a new playbook on ESG in the U.S. And third, private efforts continue to elevate the importance of climate-related financial risk within the context of ESG. We evaluate each trend below.
Certain leading states are advancing sustainable investment through a combination of procedural and substantive regulation. These states are leaning into the market’s growing focus on managing capital using ESG factors and, in turn, elevating ESG to an even more important consideration for those raising and managing funds across the liquidity spectrum.
