According to the CEO of the global asset management firm Nuveen, investors still hold an interest in environmental, social and governance (ESG) factors despite facing backlash from many conservative US politicians.
In an interview with Reuters Global Markets Forum at Davos, Nuveen CEO Jose Minaya said that companies continue to post “stewardship” sections on their websites while customers and employees are concerned about climate change.
“Tell me, what company is doing something different?” Minaya discussed the continued interest in ESG issues, adding that “people care about this.”
Nuveen, a unit of TIAA managing around $1 trillion, is associated with TIAA, whose clientele includes numerous university professors known for their generally liberal perspectives.
Minaya acknowledged that the criticism might be prompting increased regulatory scrutiny of ESG products, a development he sees as potentially beneficial.
Nuveen, a unit of TIAA managing around $1 trillion, is associated with TIAA, whose clientele includes numerous university professors known for their generally liberal perspectives.
Minaya acknowledged that the criticism might be prompting increased regulatory scrutiny of ESG products, a development he sees as potentially beneficial.
Minaya addressed the issue following a year in which several US Republican politicians actively opposed the incorporation of ESG factors in investing, arguing that it diverted executives from the primary objective of profit-making.
However, their efforts frequently met resistance in altering state laws due to concerns from companies and local pension officials who feared that strict restrictions on major asset managers could negatively impact investment returns.
In 2023, investors kept investing in sustainable funds, although at a slower pace than in 2022.
This was due to the robust performance of technology company shares supporting the funds.
