View from the Bridge
Beyond box-ticking and greenwashing: 6 steps to creating real value through ESG and responsible investing – September 2019
With climate change effects and social issues becoming more visible and more tangible every day; governments introducing regulation to gradually transition to a more sustainable economy; and technologies enabling that transition progressing steadily, “responsible investment” is slowly but surely becoming the norm among asset owners.
In the trade, business and national press, we have seen increasing column inches dedicated to supporting voices for sustainable investment practices. This is not to mention the headlines that can be the result of the reputational risk entered into by those that do not take the necessary precautions to ensure they are not unwittingly funding frowned-upon activities at portfolio companies or in their supply chain.
The number of signatories of the UN PRI (Principles for Responsible Investment) has increased to 450 Asset Owners and 1760 Asset Managers worldwide. The majority of large institutional investors actively measure impact and progress towards achieving the UN’s SDGs (Sustainable Development Goals) through its investments. And it is hard to find investors that don’t already consider ESG (environmental, social and governance factors) as a key issue, when selecting fund managers.