Danielle Welsh-Rose, Aberdeen Standard Investments
ESG investment director, Asia Pacific
The consideration of ESG issues in the investment process is arguably even more important now, pointed out Welsh-Rose.
The way companies are governed and how they are treating their employees, for example, are vital in how they are able to successfully navigate through this crisis, she said.
The Covid-19 pandemic has also highlighted that ESG issues such as inequality and poor air quality can exacerbate the human damage from the virus.
People living in social disadvantage and those living in areas with higher air pollution have been disproportionately affected by the virus.
Welsh-Rose said it is more important than ever that investors engage with policy-makers on these ESG issues, to help ensure more sustainable and inclusive economic growth.
‘In the very short term, we have seen that ESG funds in the market have broadly outperformed conventional funds.
‘We have also seen continued growth in fund flows into ESG ETFs, compared to conventional ETFs where fund flows have decreased. Client interest in ESG does not seem to be negatively affected by Covid-19.’