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Laxman Pai, Opalesque Asia: A growing number of institutional investors in Canada and around the world are
placing greater emphasis on environmental, social and governance (ESG)
performance in their decision-making, said a study.
According to the 2021 EY Global Institutional Investor Survey, most investors
(74%) indicated they are more likely to divest from companies with poor ESG track
records, but concrete action is still lacking despite the urgent need for better
quality disclosure from companies.
The race is on to get to net-zero and decarbonization through emissions
reduction, carbon sequestration, and offsetting programs. The report shows that
86% will invest in companies that have an aggressive carbon footprint reduction or
a low carbon footprint.
A further 90% of investors now attach greater importance to ESG performance in
their decision-making than they did before the COVID-19 pandemic, and 92% say
they have made decisions over the past 12 months based on the potential benefits
of a "green recovery".
And yet despite the sharpened focus on ESG performance, less than half have
taken action to update their investment policies and frameworks (49%) or revamp
risk management strategies (44%).
In addition, as organizations look for new ways to provide the long-term value
insights that stakeholders seek, a lack of regulation has investors concerned
about the quality and transparency of ESG reporting from companies they're
considering. ...................... To view our full article Click here
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