Who will shape a better future? Responsible investing after Covid-19

Covid-19 has affected every aspect of human life, in every corner of the globe. In addition to trying to assess its economic impact, it has also led us to focus more on fundamental issues: the speed of environmental deterioration and the lack of progress in reducing discrimination and inequality.

NN Investment Partners (NN IP) interviewed academics, investors and asset managers from a range of countries to hear their perspectives on what the pandemic and its long-term effects will mean. Their views and our conclusions on the role responsible investing can play in shaping a better future are published in the paper you can download below.

This summer, NN IP initiated its UpsideDown online series of events to examine the impact this historic crisis will have on society and the economy, and to explore its wide-reaching effects – including those on responsible investing.

This paper reveals our conclusions by tackling some fundamental questions and looking at the role of different players. Will governments act as responsible investors of first resort and use recovery packages to create fairer and more environmentally sustainable societies and economies? Will companies adapt by making changes because stakeholders now favour more sustainable businesses, or will they lose out? Will individuals use their power to become investors in their own future? And how will changes in consumer preferences and behaviour play out?

We believe that awareness can lead to action, and that is exactly what is happening – albeit at different speeds in different countries. The pandemic has built on the existing growing interest in responsible investing and put it on a steeper growth path. Despite the turbulence of early 2020, funds that apply ESG principles displayed resilience in terms of performance and attracted global net inflows of more than USD 71 billion between April and June.

According to Adrie Heinsbroek, Principal Responsible Investing at NN IP, asset owners and managers can be key players in the recovery, and they can shape it by investing responsibly. “As investors, it is our responsibility to assess how the key players – governments, companies and individuals – will continue to behave, to understand the existing dynamics between these players and to stimulate ongoing dialogue and cooperation.” 

If you would like to find out more about what academics, investors and asset managers think about the role governments, companies and individuals can play in the future of responsible investing and how this has helped shape our views. Download the full report here.