ESG moves from labels to investment discipline

Sustainable investing has entered a more pragmatic phase. Investors are looking beyond broad claims and product labels to financially material risks, better evidence and integration into everyday investment decisions. We sat down with Tim Verheyden, head of sustainability for public investing at Goldman Sachs Asset Management, to learn more.
After years of rapid expansion, sustainable investors are becoming more focussed on investment practice. Tim Verheyden describes the change as a move towards a more rational debate: asset owners still care about sustainability, but they increasingly want managers to show how it improves decisions and supports their fiduciary duties. “When I say I’m the head of sustainable investing, the emphasis is on investing,” Tim Verheyden says. “We’re investors and fiduciaries at the end of the day.” Sustainable investing has passed through three broad phases. The first was rooted mainly in values and exclusions. Some investors, including Nordic pension funds, have
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