Investors Increasingly Consider Environmental, Social and Governance Issues
UN Global Compact Network Australia | November 30, 2015
Currently only 25% of WFE stock exchanges provide guidance to companies on reporting ESG information. The letter aimed to reduce this information gap, and emphasised the role of a robust and holistic reporting system in creating a stable financial system that has the capacity to advance sustainable economic growth.
A recent survey by EY highlighted a growing ESG conscience in the investor community with 82.6% of institutional investors likely to see non-financial considerations, such as the environment and human rights, as relevant to their decision process. The survey also revealed that 80% of respondents consider mandatory board oversight of nonfinancial performance reporting “essential” or “important” (up from 36% in 2014).
Integrated Analysis: How investors are addressing evironmental, social and governance factors in fundamental equity valuation – showcases leading research from brokers and investment managers to demonstrate how investors and analysts are integrating ESG factors into fundamental equity valuation.