ESG factors-the king maker in covid-19 / a corporates' zero hour moment

Premal Ranchod, Senior Manager Research Analyst at Alexander Forbes Investments

Milton Friedman, the economist, said that the only social responsibility a corporate has is to increase profits within the rules of the game. In simple terms “the role of business is to be in business”. One cannot think of a more germane time than now to puncture that theory. The virus is, without doubt, a social pandemic with corporate viability squarely in its clutches. Corporates are facing their zero-hour moment.

One may argue that environmental, social and governance (ESG) factors finally found resonance of late, after years of being challenged by mainstream finance. Has the virus provided a temporary pause on ESG and corporate sustainability assessments?

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