Wendy Cromwell, Head of Sustainable Investment at Wellington Management, compares regional adoption speeds for ESG investing across the global institutional market.
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“I put the U S as a laggard in this category with a lot of evolution over the last year and a lot of momentum over the last year and this big inflection point.”
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More from Wendy Cromwell
Opinion
Physical climate risk is probably unpriced across capital markets
“If it's not priced into municipal bonds, which are place-based, have a long duration to then relatively well traded, then it's probably not priced everywhere.”
Sustainable investment lenses yield insights to beat benchmarks
“What that means is that by looking through a sustainable investment lens, we think that we can add more value. We think this is a unique perspective that leads to differentiated insights. And so therefore it's non-concessionary and we can beat benchmarks by do…”
Third-party ESG ratings will not converge like credit ratings
“And I think that that will remain over time. People sometimes wonder if they'll converge like the credit rating agencies have converged, but I don't think that's the case because they're fundamentally often measuring different things or placing emphasis on thi…”
Physical climate risk is locked in for the next 10 to 15 years
“No matter Which of those two paths that we're on or any of the paths in between the physical manifestations of climate risk over the next 10 to 15 years will be the same.”
Portfolios can cut carbon 20-30% for 50 bps tracking risk
“You start to find that by making small changes, you can reduce your carbon footprint by 20 or 30% with a 50 basis point change in tracking risk. So it seems like a relatively small change in tracking risk or volatility versus some benchmark for a relatively bi…”
Mainstream asset owners are increasingly willing to divest from oil and gas
“I've just noticed, and I would say maybe in the last three or four months, more of a willingness for mainstream asset owners to consider the case of divestment over some period of time from the oil and gas industry in particular, and that's the change too, and…”
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