Until recently, sustainable investing was considered a matter only for asset managers and investor preferences. This is changing, as regulators increasingly see it as their business to promote asset management that does societal good (or, at least, does not do bad).
Sustainable finance has become a regulatory imperative. Initiatives relating to environmental, social and governance (ESG) factors and socially-responsible investing (SRI) have received regulatory support in several countries.
As institutional investors increasingly ask more questions about ESG and SRI - in part prompted by their own beneficiaries' demands, in part by regulatory suasion - the long-standing debate about whether consideration of ESG factors or SRI fit with fiduciary responsibility is evolving.