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  • hello and welcome to sectors up close.

  • I'm Angeline on our focus today is E S g investing and our guest is debt left glow Head of Amir Research Definitive leper from global power brokers at WEF Davos to climate change protesters on the streets of London Environmental and social governance, or E.

  • S.

  • G is more important than ever on for investors to the latest data supplied by Morningstar showed US sustainable funds, led by BlackRock et efs, drew $51.1 billion in net new deposits in 2020 more than twice the previous record set in 2019.

  • But in disease and E.

  • T.

  • F s, based on SG investing are surprisingly similar to non SG ones.

  • They hold many or most of the same companies minus naughty stocks such as oil majors, minors on as in this case, luxury brands on their returns can be less than spectacular.

  • The stocks European SG 50.

  • While it outperform the stocks, 50 remains about 3% lower than it was the same time last year.

  • So what is the point?

  • It is clear investors do want SG products, but how do they approach this sector for more on this.

  • I'm now joined by representatives.

  • Debt left glow.

  • Thank you so much for joining us, Detlev.

  • I mean, we know that fund managers to saying that soon yes, you will be mainstream.

  • But for now, why invest in this sector?

  • If past performance is any indicator, E s G is if you look on it from a broader perspective, like an investment style and therefore sometimes it is superior to other investment funds, and sometimes it's not.

  • So we did a little study on the performance off SG funds with conventional funds over the 19 pandemic in March 2020 on Did actually We saw that?

  • Yes, G funds outperform honest small margin over the first quarter last year, mainly driven by the drop in oil prices.

  • As you know, yes, we have a little exposure to fossil fuels and therefore they are were less involved in that stuff.

  • And this is the big advantage from SG.

  • I mean, if you look over the big crisis we had over the couple off decades a couple of last decades, you see that in the birth off the tech bubble within the financial crisis, they were always companies which were not illegible for E S T investments, and they were not in those funds and had not the downturns from those companies.

  • Now dead love those that are four SG say you know it.

  • Zanno brain.

  • It's good for the planet helps businesses manage risk.

  • Then there are those that are against it saying, You know, it's very difficult.

  • Attn.

  • A moment on bond hinders the investment decisions.

  • What.

  • The main pitfalls.

  • Andi.

  • Opportunities from investor as you see it.

  • Well, as I said before, we see obviously a limit off the investment universe as E.

  • S G investing and even harder as awry.

  • Investing's a social responsible investing excludes sectors from your investment universe.

  • And if these are the best performing sectors, you obviously have no exposure to it and therefore and under performance to your mainstream or conventional counterparts.

  • On the other hand side, it's really a chance to use SG data because SG data is a new level off insights you can gain into a company on Do you often see that companies with a low GI score or low e score are doing in long term performance not as good as their counterparts with goods course now?

  • Yes, G seems to the investor that's not already exposes space.

  • Very nebulous.

  • So how would you advise people looking to tackle this sector?

  • Well, I would say people should look on the on the sector as they do on every other sector as well, so they need to understand the systematic off the process behind the fund they're choosing either is it is an active, manage or and passive product.

  • So you have to know what you're buying.

  • And this should be in line with your own values and beliefs to be a successful investment, right?

  • Dad left.

  • Thank you so much for your time.

  • That was deadlocked.

  • Glow, head of Amir Research at Definitive.

  • Now, before I go, here are some of the top stories in the SG space Energy giant Royal Dutch Shell has outlined plans to curb its emissions through rapid growth of low carbon businesses, including biofuels and hydrogen.

  • It's also set out plans to boost the use of carbon offsets on carbon capture to soak up its emissions.

  • The Anglo Dutch company is in the middle of an overhaul and last year pledged to eliminate carbon emissions by 2050.

  • The organization representing Europe's carmakers has told the EU that one million e v charging stations are needed in just three years on three million by 2029.

  • The influential European Automobile Manufacturers Association told Brussels that firm targets would give consumers the confidence to switch and help car makers on power grid manufacturers plan ahead on Finally, the world's largest infrastructure investor, Macquarie has raised just shy of $2 billion for its second Global Renewables fund, driven by strong demand from institutional investors in Britain.

  • On Germany, a new fund will target wind and solar projects in Europe, the United States on the Asia Pacific.

  • That's your round up off the E s G sector.

  • I'm Angeline on and this is Reuters.

hello and welcome to sectors up close.

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