27 April 2020
This report, from think tank Sustainability, shares insights from 17 in-depth interviews with investors, supplemented by a survey of 25 investors, highlighting their views on current Environmental, Social and Governance (ESG) ratings.
Apparent in this report is how investors and asset managers approach ESG differently. ESG ratings are used widely, but differently, being one input among others such as proprietary analysis. A growing consideration for investors goes beyond how a business manages ESG issues to whether business models are sustainable. Ratings challenge and sometimes frustrate investors, but have helped to mainstream sustainable investing. Investors value a smorgasbord of ESG ratings and better ESG data disclosure, with regular reporting and use of big data and AI to fully integrate ESG information into financial statements.