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Laxman Pai, Opalesque Asia:

The majority of institutional investors believe companies must address the needs of a wide range of stakeholders, not just shareholders, and must implement effective environmental, social impact and governance (ESG) practices to win their trust.

According to the 2019 Edelman Trust Barometer, Special Report: Institutional Investors investors are now acutely focused on how employees and other stakeholders can impact the valuation of companies in which they invest.

Companies that excel in driving ESG factors will gain a clear advantage in winning investor trust and supporting a premium valuation, revealed the research of 600 institutional investors in six countries representing firms that collectively manage over $9 trillion in assets under management.

Investors are investing more in ESG-excelling companies

More than half of investors believe that ESG practices positively impact trust, with 61 percent having increased their investment allocation to companies that excel when it comes to ESG factors.

Data privacy and cybersecurity, employee health and safety, and eco-efficiency are the top priorities for shareholder engagement in the next 6 months. Ninety-nine percent of respondents expect the Board of Directors to oversee at least one ESG topic.

87 percent of respondents said that their firms have changed their voting and/or engagement policy to be more attentive to ESG risks and 56 percent of investors globally are hiri......................

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