ESG in Strategic Asset Allocation: Megatrends shaping the global economy

Global trends relating to Environmental, Social and Governance (ESG) phenomena are expected to affect the economy on a fundamental level in the coming years. From climate change to digitalization, to pandemics and aging populations, the current economic paradigm is being challenged from all sides. This has consequences for institutional investors and their approach to long-term asset allocation. In a series of papers, we will look at how ESG trends affect portfolio construction through scenario analysis.