The focus on ESG is in full force in the UK as well. In fact, ROBO Global’s newest ETF partner in the UK has one of the most forward-thinking ESG visions in the industry. The company’s vision is “to encourage positive change in the companies and markets in which we invest,” and their focus on active ownership that uses their “scale and influence to bring about real, positive change to create sustainable investor value” seems to carry through in everything they do.
The company’s annual report is filled with language I could not have anticipated coming from one of Europe’s largest and oldest institutional asset managers. Not a decade ago. Not even two years ago. But the value and importance of ESG has clearly made it a global investment priority for this industry leader, as well as for corporate and retail investors who are striving to not only invest in companies that are helping to improve our world, but who are also seeking to increase long-term investment returns.
The alignment between RAAI and ESG is a key reason investors eyeing robotics are so keen to talk to ROBO Global. ROBO Global is currently the only robotics index with an ESG policy. The ROBO Global Industry Classification Methodology is designed to identify a universe of technologies and applications that are suitable for inclusion in the index, and our strict selection criteria for index members explicitly excludes companies that do not pass the ROBO Global ESG Policy. It’s the first step (though certainly not the last) toward distilling that universe down to the 80+ companies that our advisory board of industry experts and PhDs in the field believe carry the highest growth and earnings potential—and every one of those companies must adhere to our ESG guidelines.
Personally, I’m thrilled ESG has grown to become a top priority for investors. As a father, I’m well aware of the responsibility of our generation as we pass this world on to the next. It’s just one reason I’m so passionate about our work at ROBO Global as we help promote the technologies and applications that are truly making our world a better, safer, and healthier place. As an investor and business leader, I know that the potential for ESG investments reaches far beyond the desire to align one’s values with the desire to grow a portfolio.
I may have been a bit surprised in Australia that ESG was the topic of nearly every conversation. I’m not surprised at all that ESG is delivering on its promise to create a better world while offering the potential for highly competitive returns to investors. It really is a perfect match, and I’m happy ROBO Global is right in the thick of it all.
For more trends in robotics, visit the Robotics & AI Channel.