Impact and ESG Investing in 2021

Happy new year! We hope everyone had a nice holiday season. Impact and ESG investing experienced record-breaking growth in 2020 and we are excited for its ongoing advancement in 2021.

The focus on investments supporting COVID-19 relief and economic equality will continue to be at the forefront of impact and ESG investing, as well as investments supporting climate change and sustainability. Declining costs to climate solutions, strong climate competition, and the growth of interest in sustainable offers from emerging markets and financial institutions are at the top of the list of Impact Alpha’s “10 ways investors are riding the sustainability wave into 2021”.1 Moreover, the United Nations has also designated 2021 to be the International Year of Creative Economy for Sustainable Development in the efforts to advance the 2030 Sustainable Development Goals (SDGs).2

The new administration and the commitment to rejoining the Paris Agreement on Climate Change will be another big influence on the growth of impact and ESG investing in 2021.3 A recent Barron’s story discussed how the election of Joe Biden as the next president of the U.S. is expected to have wide-ranging implications for investors who care about the environment and society. These include prioritizing social businesses, improving corporate ESG disclosure, reforming the Community Reinvestment Act and boosting CDFIs, and supporting clean energy and sustainable business models.4

We are eager to see how impact and ESG investing continues to thrive in 2021 and look forward to keeping you updated on its progress. If you have any suggestions for blog topics in 2021, please email Iza Daguila at idaguila@ccminvests.com

 

1https://impactalpha.com/here-are-10-ways-investors-are-riding-the-sustainability-wave-into-2021/?mc_cid=079197a61c&mc_eid=c315bea8ac

2https://undocs.org/A/RES/74/198

3https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/the-esg-trends-that-will-drive-2021-8211-podcast-61980796

4https://www.barrons.com/articles/how-a-biden-administration-will-boost-esg-and-impact-investing-01604961238

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