It seems likely that environmental, social and governance-driven asset allocation will develop a place in the ecology of global financial markets. Properly executed, it can add to the array of choices available to investors.

ESG featured prominently in Berkshire Hathaway’s annual meeting on 1 May, as major institutional investors, themselves seeking to attract and retain more high-margin funds from ESG-motivated clients, pushed for a greater focus on sustainability across the Warren Buffett-run conglomerate, including the composition of its own board. Management did not seem convinced.