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Laxman Pai, Opalesque Asia:

Nearly half (49%) of investors say a company's failure to address environmental, social, and governance (ESG) issues might prompt them to divest their investment in the company.

PwC's 2021 Global Investor ESG survey revealed that 59% of investors having more than a combined US$11.6 trillion assets under management said 'lack of action' on ESG issues makes it likely they would vote against an executive pay agreement, while 79% said the way a company manages ESG risks and opportunities is an important factor in their decision making.

The survey, which sampled more than 350 institutional investors globally, found that 82% believe ESG needs to be embedded in a firm's corporate strategy, with nearly three-quarters, or 74%, of investors, saying decision-making would be better informed if companies applied a single set of ESG reporting standards.

The survey revealed most investors are likely to act if companies are not doing enough to address ESG issues, but most also say that they don't want a company's action on ESG to significantly if at all, impact their investment returns.

The vast majority, at 81%, said they would accept no more than one percentage point less in investment returns for the pursuit of ESG goals, while 49% were unwilling to accept any reduction in returns.

Investors increasingly want to hear more from companies about their ESG-related commitments - 83% surveyed said it is important that ESG reporting provide det......................

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