This article/video was produced by Livewire Markets and published on 8 December 2021.

The trillions of dollars being spent every year on global sustainability will be one of the biggest factors driving investment returns for the next decade or more, says Alphinity global portfolio manager Jeff Thomson.

In this episode of Expert Insights, Thomson discusses who has been getting ESG wrong — he puts Activision Blizzard and Facebook/Meta in the naughty corner — but, more importantly, the inspirational stories of companies that are getting it right.

Neither of his examples — Schneider Electric and Partners Group — is well known yet in Australia.

The two companies operate in very different spheres but demonstrate innovative ways of aligning incentives and driving change while meeting investor demands.

Schneider, a French multinational, makes the electronic components at the heart of the technological revolution and has built ESG incentives into the remuneration of most of its employees.

Partners Group, based in Switzerland, is a private equity business driving ESG improvement through capital allocation.

Watch this short video or read the transcript for more on why Thomson is excited about finding the companies that are driving progress in ESG.