Actual ESG: data illuminates, but only judgement solves problems



Actual investment is not about stockmarkets and share prices, it is the art of deploying long-term capital to create wealth in the real world. But wealth creation isn’t real if it slowly destroys the environmental and social fabric of society at the expense of future generations. Some of the greatest growth opportunities in coming decades will therefore be amongst those companies that are doing most to tackle our biggest challenges. This process of disruption and change is judgemental and can’t be captured by backwards looking ESG metrics. In fact, using such an approach may be a dangerous distraction from the overarching need to change real world behaviours.

  • Responsible investing is not primarily about simple exclusions or portfolio tilts.
  • The real world conduct of companies matters far more than sweeping rules. Resource-intensive engagement is key.
  • ESG isn’t just about risk, it guides us to our future great growth opportunities"

Client Service Director
Baillie Gifford