While there are clear differences between companies and social enterprises, Mr David is adamant that "neither can be objectively said to be better than the other for investors; they serve different purposes".
Lisa Beauvilain, head of sustainability and ESG at Impax Asset Management, comments: "The choice between these depends on investors’ values, preferences and their risk and return expectations."
Rose Beale, a thematic analyst in the responsible investment team at Columbia Threadneedle Investments, says: "Ultimately, what is best for investors depends on their broader investment goals.
"For some investors, integrating ESG in the investment process, as a risk management and potentially return enhancing strategy, is a priority.
"Others, though, now require not only financial return, but also social and sustainable benefits from their investment, so are increasingly looking for opportunities to invest in businesses that evidence social and sustainability-driven missions, products and services."
simoney.kyriakou@ft.com
