The case for investing in accordance with environmental, social and governance (ESG) principles has been clearly made and sectors that obviously help tackle climate change often trade at higher multiples.
That is partly because they are the sectors that will see rapid growth in the coming years, and partly because there is so much money chasing ESG stocks.
It does, however, leave ESG investors constantly on the lookout for the next hot topic. Seb Beloe, the head of research at WHEB, an impact investor, said: “Renewables is now a mainstream part of the market and will continue to be an area of growth.” As sales of electric vehicles accelerate rapidly, he said investors were focusing on carmakers and battery companies. “The next one the investment
