WHAT IS DRIVING THE ESG BOOM?
Ethical investing – ESG investing – is unquestionably booming across the globe. With its focus on the challenges we face today around social issues, sustainability and growth, it is increasingly becoming an imperative for investors. More and more investors are seeking to put their money into assets that have a holistic approach to sustainability, with a focus on disruptive change, financial strength, the environment and a positive social impact.
Impact on M&A
Aside from the obvious long-term benefits to the environment and society, ESG is a hidden success factor in M&A transactions. There are various reasons for this. First, the cumulative total returns when acquiring an ESG-focused asset tend to be significantly higher than when there is no ESG component. Furthermore, strong macrotrends and the continually increasing appetite from investors mean that ESG assets are valued at a premium. And finally, various key funds have now launched investment vehicles dedicated to ESG investing.
Our ESG Sector Coverage
ESG spans across many sectors, though there are six in particular where we see increasing traction and opportunities for our clients; Energy Efficiency, Water, Waste & Recycling, Education, AgTech and Healthcare.
GCA joins UN-supported Principles for Responsible Investment
GCA has become a signatory of the United Nations-supported Principles for Responsible Investment, the world’s leading proponent of responsible investment. The PRI works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of signatories in incorporating these factors into their investment and ownership decisions.
Our ESG Team
DR JULES WURLOD
PRESIDENT GCA USA
JAPAN / ASIA
OF GCA TECHNOVATION