McGuireWoods London partner Marc Naidoo was quoted in the Raconteur article “Passive versus active: The ESG debate” on May 5, 2021.
The article takes a look at whether passive funds can be compliant with
environmental, social and governance concerns, and how this may open up
opportunities for a more active way of investing.
The major trends in investing over the past few years have been the move
from active fund management towards passive funds and growth of interest in
environmental, social and governance (ESG) issues.
“An ESG fund might raise cash for ESG projects, but this is commingled with
the rest of the firm’s accounts,” Naidoo said. “If an investor wants to
know their money has been invested into green projects, the fund manager
can’t be sure exactly how much, if any, has gone to which project.”