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Cowen Best ESG Investment Ideas for 2021

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Cowen Research shares their best ESG investment ideas for 2021. In this video, they explain how ESG investing has changed in recent years, highlight how investors have shifted their focus and quantify funds available for sustainable funds. Press play to learn more.


ESG-driven investing has grown dramatically in recent years driven by government policies, demographic shifts, and an evolving view of risk. The supply of thematic products like green bonds, sustainability-linked loans and ESG funds are surging in response.

ESG investors are not only focused on financial return but also want to understand the ESG impact of their investments, and risk factors associated with potentially being an ESG outlier. 

In 2020, flows into sustainable funds available to U.S. investors reached $51.1bn versus $21.4bn in 2019 according to Morningstar. According to Bloomberg, a record 446 new ESG funds were launched in 2020 bringing the total number of such funds to 3,479.

Roughly one in four dollars in the U.S. is now invested through an ESG lens. We see demand for ESG-driven investments accelerating this decade. All else equal, when evaluating equities we expect investors will increasingly choose to invest in companies with better ESG profiles.

Cowen recently launched a uniform ESG score that appears on the front page of every company research report that we publish in an effort to help investors discern between companies.

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