Congratulations to elEconomista on its 15th anniversary. Its publication has been a leader in the print and online economic press and has become one of the most popular financial information organizations in Spanish.
During these 15 years we have seen great turmoil in markets around the world and we have witnessed the dramatic growth and impact of technology not only in the financial world but in all spheres of global life.
This dynamic has been accelerated by the Covid-19 pandemic. Technological advances in recent decades have provided emerging countries with the tools to advance their economies. We have seen a clear shift from low cost manufacturing to highly innovative and market leading companies.
In Asia, in particular, we are witnessing an economic “miracle” comparable to post-war developments in Europe, which has created a unique and versatile ecosystem that is increasingly dominating the world in innovative technologies; From factory automation, sensor technology, autonomous driving, consumer electronics, the Internet of Things (IOT) to artificial intelligence and alternative energy, Asia is taking a global lead.
Another very important development during this time, which by the way gets excellent coverage in the Economista, has been the growing awareness of Environmental, Social and Governance (ESG) factors. This awareness has influenced the decisions that citizens make. And this, in turn, has influenced the behavior of companies and investors. While we as investors have always considered governance factors when investing in a company, the recent focus on ESG has helped us take a step back and clearly formulate our approach.
The result is a proprietary framework against which we diligently assess ESG factors in our research process. Additionally, we discovered that a crucial component was missing from the ESG equation: company culture. So we coined the term ESG+C and integrated corporate culture into our process. We do not invest in ESG leaders, but in companies that have the potential to become “best in class”. Once we have invested, we work closely with their management teams to help them strengthen their ESG footprint.
This approach to ESG factors in investing is a benefit for all stakeholders: companies, employees, investors and the societies in which they operate. I believe we have an exciting decade ahead of us, one in which we will see a strong recovery that will drive growth and innovation. And this growth must be responsible and sustainable. I am already looking forward to celebrating the 25th anniversary with the Economist in 2031 and looking back on the last 10 years.
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