Deep Dive: UK ESG equity investors must remain 'adaptable'

James Hart, investment director at Witan investment trust, argued the key to ESG investments was to understand risk and reward. Hart argued companies that fall short of ESG best practices expose themselves to the risks of financial penalties, loss of revenue, or increased cost of capital, as both societal expectations and legal frameworks increase pressure on them. This sentiment was echoed by Matt Evans, portfolio manager of the Ninety One UK Sustainable Equity fund, who said that when considering exclusions, the fund is "less interested" in sectors with strong negative externalities...