Does Divestment Work?

Should fund managers try to encourage companies to change for the better by refusing to invest?

Annalisa Esposito 24 April, 2020 | 12:32AM

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The ways that sustainable funds choose their investments vary greatly. Many funds use negative screening to rule out businesses that don't fit within their criteria. But some investors would argue this attitude does little to encourage companies to change. 

L&G is one of these. It tries to raise the standards of the companies and markets in which it invests in, pushing for positive change on a broad sweep of areas including sustainability, executive pay, diversity and political lobbying by corporates.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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