![Responsible investment should improve and outperform the market, not become the market](https://s.wsj.net/public/resources/images/FN-AM162_FN_TRE_M_20210104051422.jpg)
In recent years, the investment industry has undergone a fundamental change in the way it approaches responsible investment. What is needed now is true transparency and a recognition that environmental, social and governance-focused investments (ESG funds) are not a homogeneous product.
Only a few years ago, responsible investment was considered a niche activity, a European phenomenon. Some argued it undermined fiduciary duty. Many were convinced it inherently resulted in lower returns.