Responsible investment practices are becoming ever more important to investors. Environmental, social and governance considerations can have an impact on a company’s long-term viability, risk mitigation and performance. Active engagement with potential borrowers on ESG risks forms a core part of Kimura’s process.
In 2019 environmental activism has created news headlines to put climate change and sustainable business practices centre stage. We have seen highly publicised and impactful protests by Extinction Rebellion in the UK, while on a global level, Generation Z is creating awareness through actions spearheaded by people such as Greta Thunberg. These groups are committed to raising the profile of climate change and are demanding positive action to secure the future of the planet. Social media and the digitised world have made individuals far more aware of the impact people and companies have had on our planet through years of implementing irresponsible business strategies. With mindsets changing, the next generation of investors are seeking ways to generate returns that incorporate considerations to preserve the planet and responsible decision making as standard.