The University of Cambridge has announced it is to join forces with leading asset managers and owners to advance the value of sustainable investing, ahead of National Ethical Investment Week (NEIW).
The three-year project is designed to promote understanding of how managing environmental and social factors can improve positive long-term returns.
Along with the Investment Leaders Group’s (ILG) 12 members, the university will explore the degree to which economic, social and environmental factors can influence long-term value creation. The project will also look at fundamental issues and barriers to increasing environmental and social factors in investment.
Carlos Joly, a fellow of the Cambridge Programme for Sustainability Leadership (CPSL), said, “Pursuing environmental and social goods does not have to preclude robust returns on investments. On the contrary, we can create a virtuous circle, whereby considering environmental and social factors in investment decisions can drive both economic prosperity and societal wellbeing.
“That is the only secure basis on which business and long-term investment can flourish.”
The ILG group will identify and test new investment practices. They will use evidence review, model development, empirical testing, engagement and thought leadership reports.
Meanwhile, Jake Reynolds, who leads the Cambridge team behind the project, said, “The calibre of the participants in the ILG and its collective ambition are both very high, which tells you something about the importance of this topic.
“By starting with the fundamentals, from the ground up, we have an opportunity to put the value of sustainable investment beyond doubt.”
NEIW begins on October 13 and will continue for seven days with numerous events being held around the country. NEIW brings together advisers, financial organisation, NGOs, community groups, charities and churches in a bid to ensure that everyone knows they have sustainable and ethical options when it comes to finance and investment decisions.