2023 saw major developments surrounding environmental, social, and governance (ESG) investments, including lawsuits, political controversy, and increased regulatory scrutiny. Despite these challenges, ESG investment performance remains strong. As we look ahead to 2024, IEN spoke with Marina Severinovsky, Head of Sustainability, North America, Schroders, and a member of the IEN Sustainable Retirements Expert Council, about the outlook of ESG and sustainable investing in 2024 from an asset manager’s perspective.

Interviewee 

Marina Severinovsky

Head of Sustainability, North America

Schroders

Looking ahead to 2024, what do you see as the trends in ESG/sustainable investing?

As investors become more comfortable with sustainability as an investment discipline, we are seeing demand mature from seeking more general integration of sustainability characteristics to more specific approaches that directly benefit from long-term global economic themes.

Schroders identifies key themes in our 3D-Reset framework, including decarbonization, deglobalization and demographic change. With decarbonization perceived as an enduring trend, driven by policy and regulation, as well as increased corporate commitments, institutional investors are seeking to tap directly into market tailwinds for companies that are leaders in or enablers of transition. In other words, there is a shift from simply considering ESG as a risk mitigation tool, to identifying and targeting opportunities arising from macroeconomic shifts.