Feb 15, 2022
Aviva Investors chief warns over rush into ‘overpriced’ green stocks
Green stocks are often overpriced and can offer investors limited scope for making a positive impact on the environment, the chief executive of Aviva Investors has argued. The rush among asset managers to adopt sustainable investment has created pockets of extreme overvaluation, and is tilted too heavily in favour of stocks over debt, said Versey. "Defining what might be sensible as an investment definitely depends on the timeline. The longer the timeline, the less it makes sense to be holding truly brown assets [because] these are going to wind up being stranded assets," said James Alexander, chief executive of the UK Sustainable Investment and Finance Association. "What's good for the world is providing capital flows to green and transitioning assets, but what we really need to see is all investors being really active stewards of capital." Versey said investors should be acting as advocates across all asset classes.
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