ESG shares are the next tech stocks

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Institutional investors are likely to favour companies with sustainable business models

Companies developing new technologies that will enable the world to reduce its reliance on fossil fuels will emerge as the main drivers of investment returns over the next 15 years as environmental, social and governance concerns become a key determinant of where institutional capital is deployed.

That is the view of John Green, chief commercial officer of Ninety One, SA’s biggest listed asset manager, who says ESG should be viewed as an investible idea and not just a marketing exercise. In fact, Green says ESG-focused equities could provide the same opportunity as Facebook, Amazon, Netflix and Alphabet — the so-called FAANGs — which have rewarded investors with stellar returns in the past two decades...

 

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