ESG investing: Greater possibilities for the future

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Your partner for responsible investing

We believe that environmental, social and governance (ESG) is an essential part of the solution toward an equitable, sustainable future, and we have provided ESG products and solutions for more than 30 years. We're proud participants in a number of industry organizations and advocacy groups committed to ESG investing principles. 

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ESG at Invesco

Hear from President and CEO Marty Flanagan on the rise of ESG in asset management and Invesco Ltd.'s commitment to sustainable investing.

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Transcript

Marty Flanagan

Well, we want to be an ESG leader, there’s little question about it. And our heads are down, we’re investing, we’re really working very, very hard at it, and our focus has been on embedding ESG, also spending time on thought leadership to ensure that we can get the message out about the importance of ESG globally.

And the other point that I’ll make just generally, I’ve been in the industry now a long time. The rise of ESG within asset management is a change of a magnitude that I have never seen in my career. It is changing how people are thinking about investing, it’s a healthy development, and it’s one that you really need to have the resources, have the commitment, and ensure that you can be as thoughtful in the ESG process through all elements of your business if you want to be successful going forward.

It’s being demanded by clients, and it’s something that we are responding to in a very real and important way.

Creating solutions for all types of ESG investors

Our ESG capabilities can be implemented across equities, fixed income, multi-asset, alternatives, and real estate. We approach this discipline in two primary ways:

Actively managed strategies

When implementing ESG, our active management teams look at the potential impact of the E, the S, and the G on the performance of any investment, and make deliberate choices about which merit inclusion in a portfolio. Currently, 75% of our teams have fully embedded basic ESG considerations into their investment processes, and we’re aiming for all of our teams to be fully integrated by the end of 2023. [1]

Index-based solutions

When creating ESG products, our exchange-traded fund (ETF) team partners with ESG-savvy index providers to design indexes that identify and weight securities according to meaningful ESG metrics. And then we create ETFs to give all types of investors easy access. We also create custom ESG index solutions tailored to the specific preferences of institutional clients. [2]

The end result is a comprehensive and growing range of ESG investment products that clients can access the way they want, including ETFs, mutual funds, separately managed accounts, unit investment trusts, and custom indexes. 

New ways to access the innovators of Nasdaq

Access NASDAQ 100 and NASDAQ Next Gen 100 ESG portfolios with Invesco.

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Footnotes

  • [1]

    Source: Invesco. Subject to change.

  • [2]

    Invesco Indexing LLC is an indirect, wholly owned subsidiary of Invesco Ltd. The group is legally, technologically and physically separate from other business units of Invesco, including the various global investment centers.

  • [3]

    This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example:

    You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.

    The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.

    These additional risks may be even greater in bad or uncertain market conditions.

    The ETF will publish on its website each day a “Tracking Basket” designed to help trading in shares of the ETF. While the Basket includes some of the ETF's holdings, it is not the ETF's actual portfolio.

    The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance.

    For additional information regarding the unique attributes and risks of the ETF, see each Fund's individual product page. IVLC & IVRA.