TED talks: the investment logic for sustainability – Chris McKnett

It is “reckless” for investors to ignore environmental, social and governance (ESG) issues, Chris McKnett argues in this week’s featured TED talk.

With sustainability one of the world’s most important goals, McKnett – of State Street Global Advisers in the US – makes the case for investment that considers non-financial factors in a must-watch 12-minute speech.

He criticises investors who are simply out to maximise financial returns, saying that sustainable investment can offer the same or better performance, but with the added benefit of a healthy planet.

He concludes, “But my point is that we buy insurance to protect ourselves financially in case those things happen, right? 

“So by investing sustainably we’re doing two things. We’re creating insurance, reducing the risk to our planet and to our economy, and at the same time, in the short-term, we’re not sacrificing performance.”

To watch this video on the TED website, click here.