ADVERTORIAL FEATURE
ESG hard-coded in Henderson Diversified Income ’ s DNA
ESG investing has shot to prominence in recent years – the assessment of environmental , social and governance ( ESG ) credentials when making investment decisions . Yet , for Henderson Diversified Income , ESG considerations are nothing new , with the managers realising early on that companies will only grow and do well if they genuinely look after the crosssection of stakeholders from across a business ’ s value chain . What is more , the recent hardcoding of certain exclusions into the investment process due to ESG risks does little to change the company ’ s investment approach , with it going hand-in-hand with its ‘ sensible income ’ investment philosophy .
A sea change When the American Business Roundtable – a powerful lobby of the US ’ s top CEOs – switched its shareholder-focused mantra towards encompassing all stakeholders in 2019 , it thrust responsible investing into the limelight . In recent years , the rising number of extreme weather events have shone a light on climate change , and as social justice causes become much more widely reported , ESG investing has grown sharply to meet demand from increasingly socially conscious investors . Responsible investing – where investors explicitly examine the risks and opportunities associated with a company ’ s ESG credentials as part of their investment process – has burgeoned in lockstep , with assets invested in these strategies growing from $ 1 trillion at the end of 2019 , to just shy of $ 3 trillion at the end of 2021 . Regulation has followed to increase transparency and accountability , accelerating ESG ’ s integration within fixed income . The EU ’ s Sustainable
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