The Ukraine war will lead a rethinking of the ESG investing

In Short

The Russia-Ukraine conflict has generated an intense debate regarding some established ESG practices.

Highlights:

  • The Russian invasion of Ukraine raised new questions for ESG investment and complicated existing trade-offs. For sovereigns, it showed that a good average ESG rating is not enough. Outright exclusion based on poor governance may become more popular.
  • Finding alternatives to Russian gas can stand in the way of reducing emissions. Longer-term, accessing the resources for the green transition requires tighter links with countries with a patchy record on human rights.
  • On the corporate side, mounting political pressure to improve ESG perception of the Defence Sector will face a challenging implementation. Most large players are selling to non-democratic countries exposing investors to significant reputational risk.
     

Download the full report

Focal Point I The Ukraine war will lead a rethinking of the ESG investing
Picture

© Generali Investments, all rights reserved. This website is provided by Generali Investments and is considered as a marketing communication and financial promotion related to the products and services of the following companies belonging to the Generali group: Generali Asset Management S.p.A. Società di gestione del risparmio and Generali Investments Luxembourg S.A. (hereinafter jointly, Generali Investments). Moreover, the website may contain marketing communication and financial promotion of products and services of companies part of the multi-boutique platform coordinated by Generali Asset Management S.p.A. Società di gestione del risparmio and in particular of Infranity, Sycomore Asset Management, Aperture Investors LLC., Plenisfer Investments SGR, Lumyna Investments, Sosteneo Infrastructure Partners SGR and Generali Real Estate S.p.A. Società di Gestione del Risparmio