Fund managers who invest according to environmental, social and governance (ESG) principles will always emphasise the fact that while their strategy aims to do some good for the world, it is also about scrupulous risk management.
Fred Kooij, chief investment officer at Tribe Impact Capital, a wealth manager, says: “If you consider what ESG is screening for, it’s a common language so investors can speak to management teams about what they are doing to manage these key risks. We are living in a world where the consequences to the environment, society and governance have legal ramifications, so you cannot separate having an ESG framework [from] good, solid risk-adjusted investing.”
Tribe calls itself an impact investor, which takes ESG investing one step further to consider a
