Let us put socially responsible investing in a wider context. The question of the kind of economic system most likely to deliver the greatest benefit to society is not about capitalism versus communism. In our world with global warming, the question is what type of capitalism will maximize sustainable economic growth. The last decade clearly demonstrates free and unfettered markets ("market fun­damentalism”) do not deliver optimal long-term results.

The global financial crisis in 2007 had its origins in short-term, unsustainable strategies and actions. Before the crisis and since, we have called for a more long­term and responsible form of capitalism — what is sometimes called "socially responsible investing.” It explicitly integrates environmental, social, and govern­ance factors into strategy, and into measuring outputs and assessing risk and opportunities. Socially responsible investing challenges us to generate financial returns in a long-term and responsible manner.

Sustainability and long-term wealth creation are closely linked. In essence, our economic activity is based on the use of natural and human resources. Business and markets cannot operate in isolation from society or the environment. In addition, the sustainability challenges the planet faces today (i. e., the climate crisis, poverty, oppression of women, pandemics, water scarcity, migration, and urba­nization) are extraordinary and completely unprecedented. It is business and the capital markets that are often best positioned to address these issues.

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