From income inequality and high indebtedness to unemployment,
governance failures and ravaging droughts, we are living in a time characterised by complexity.
It’s within this context that allocators of capital and business leaders must work towards driving inclusive growth and financial performance.
ALIGNED INTERESTS South Africa is at a point where it has a significant opportunity to regain high levels of economic growth – if we can turn market inflows into real foreign direct investment in our economy.
Global growth is also supportive when it comes to enabling stronger export performance.
However, these objectives can only be met with support from a stable government aligned with a private sector that exhibits strong governance and a long-term mindset.
As an investment management business,
Old Mutual manages money for a range of institutional clients with long liability horizons.
Ultimately, our responsibility lies with our end clients, who have real concerns about being able to retire with sufficient financial resources in a world that is safe, just and environmentally sound for their children.
Globally, we are seeing an increased interest from businesses in understanding the impact environmental, social and governance (ESG) factors have on financial performance.
This interest is not born of baseless optimism; there is growing evidence that proper ESG management can lead to superior performance.
Therefore, investors are becoming increasingly focused on how companies are managing these issues and potentially unlocking new opportunities.
This is specifically relevant in emerging markets, where 65% of studies have found a positive correlation between ESG factors and financial performance.
As a result, there is a strong business case for those companies willing to take leadership positions regarding the management of ESG issues. GREAT EXPECTATIONS Asset managers have a long-term lens and, as such, should aim to secure a more sustainable allocation of capital.
Old Mutual Investment Group consistently engages with business leaders around how we can create an enabling market ecosystem.
To that end, we have some very clear expectations of SA Inc.’s leadership within the context of ESG management.
GOOD CORPORATE GOVERNANCE IS NON-NEGOTIABLE
For those of us in emerging markets, governance has specifically been tagged as one of the biggest influencers of performance.
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