Per a study discussed in this article:
- 72% of European fund managers and distributors are considering halting the launch or distribution of new products that do not comply with ESG standards; and
- 68% plan to cease their distribution of all products that do not comply with ESG standards
The balance of the world is not far behind.
As this evolution unfolds, privately-held companies, including SMEs, serving the publicly-traded companies in these funds, will be swept up in the necessity to be certified sustainable and have a carbon neutral and ESG plan, as these fund-owned public companies will not be able to use vendors that do not also comply.
Tremendous opportunity exists for a SME to become certified sustainable and take market share from competitive peers that are not progressive in their adoption of sustainability.