FAN - Is COVID-19 An Impetus For ESG Investing?
Life is being on the wire, everything else is just waiting. — Karl Wallenda
Crises often trigger irrational behaviors from investors shifting their focus towards short-term goals that don’t always coincide with their long-term plans. The economic uncertainties reinforce risk aversion setting off the flight-to-safety phenomenon. This pandemic is no exception. The volatility in the global financial market left investors scrambling for higher quality and less risky assets. Irrational as these behaviors may be, crises reshape the future of investment. This holds true for ESG investing. The primary driver of doing ESG is risk mitigation