EP 249: Combining Value Investing & Sustainability Opportunities

As companies and investors continue to navigate the 3D-reset themes of decarbonization, deglobalization and demographic change, Schroders believes that it is important to consider the practical investment implications of these broad trends. In 2024, Schroders sees investors transitioning from simply thinking of ESG risk management and integration to an increasing focus on sustainable opportunities and themes to harness for value creation. But Sustainability need not be simply a growth-chasing exercise! In fact, Schroders believes that the asset managers who succeed in 2024 will be those that can deliver active management alpha around both valuation and sustainability objectives for clients. As a result, Roberta Barr and Alex Monk are focused on balancing both value and sustainability considerations in their portfolios. On one hand, they agree that “in the long run, the price you pay for something really matters,” and at the same time they believe that it is important to invest in sustainability leaders, companies that can deliver positive societal benefit and are best-in-class versus peers, and will therefore be better placed to navigate change in the future.