Growing pains: responsible investing reaches adolescence – AllianceBernstein

While the turmoil that comes with rapid change can be unsettling, AllianceBernstein welcome it as a sign that responsible investing is growing up.

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... Environmental, social and governance (ESG) investing has survived a challenging year, with increased regulatory scrutiny and rocky performance providing fodder for fierce debate. While the turmoil that comes with rapid change can be unsettling, AllianceBernstein welcome it as a sign that responsible investing is growing up.

In fact, we’ve witnessed this natural phase during previous paradigm shifts in systems, processes and cultures. Within AllianceBernstein's own industry, they saw a similarly turgid period with the rapid rise of the ETF, which eventually settled into the mature market it is today. 

AllianceBernstein have found it more fruitful to engage on big ideas early and constructively, rather than ignore them. Thus, they see recent challenges as opportunities for stakeholders to collectively write the playbook for ESG investing: developing and adhering to regulations; settling on a common taxonomy and terminology; and creating diverse ESG-focused return streams that enhance long-term return potential.

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