Sustainable investment: An opportunity to "build back better"?

Abstract

Sustainable investment is a significant trend since the 1990s, especially in the US, with a composite annual growth rate of 14% since 1995. This asset class covered in 2020 a third of all assets under management or $17.1 trillion. Asset managers and business people cknowledged the transition from shareholder capitalism, where financial results dominate, to stakeholder capitalism, which includes environmental, social, and governance criteria in its evaluation. In effect, environmental,  social, and governance impacts are now on the agenda. Following the shock of COVID-19 and the disclosure of the vulnerabilities of businesses, governments, and health care services, the time is right to align near-term policies and long-term strategies according to a common visión for the future that can be inspired by the UN Sustainable Development Goals, international conventions, such as the Paris Agreements, the World Economic Forum perspective for a nature-positive economy, or green policies, such as the Green New Deal. By addressing the root causes that lead to pandemics, we can restore the ecosystems, protect biodiversity, and reach carbon-neutrality. Economic recovery packages and sustainable investments offer the financial means to transform our societies and business initiatives towards a resilient, green, inclusive, and sustainable future.