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It didn't take a pandemic for interest in environmental, social, governance (ESG) investing to increase. From 2016 to 2018, sustainable investing already had grown by more than 38 percent, according to US SIF. But during the recent economic downturn caused by the coronavirus pandemic, it did not pass unnoticed that funds that invested in companies based on their ESG ratings became "relative safe havens," as S&P Global Market Intelligence put it, and BlackRock noted, "Overall, this period of market turbulence and economic uncertainty has further reinforced our conviction that ESG characteristics indicate resilience during market downturns."

Matt Seymour, CEO of RiskFirst, discussed some of the recent trends in the pensions industry around ESG, as well as misconceptions that are still circulating.  RiskFirst provides risk management analytics and reporting solutions for the pension and investment industry.

BenefitsPRO: What trends are you seeing around pension plans and fund managers looking at incorporating ESG factors into their investment strategy? What is their motivation?