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 Jeff Vilker, Director of Defined & Contribution at Impax Asset Management on his thoughts of the state of ESG as we begin the year.

Interviewee 

Jeff Vilker

Director, Defined Contribution & Benefit

Impax Asset Management

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

We see three primary trends as we look to 2024. First, we anticipate the desire to merge personal values with long-term investment objectives will continue to grow. Second, we see the percentage of total asset managers -- traditional or sustainability-focused -- utilizing ESG data in constructing portfolios increasing from an already very high base (70-90% depending on the study referenced). Finally, we see investor and plan participant interest in topics such as climate change, biodiversity and DEI increasing -- with climate being the top concern on many investor’s minds.