A global study by Capital Group found that ESG is here for the long haul. The study involved 1,040 global investors, and 3 out of 4 disagree interest in ESG will wane once the pandemic is over.
Here is an excerpt about the survey and more as reported in South China Morning Post (SCMP) article,
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“While Covid-19 has helped accelerate ESG fund flows, these findings show that investors do not think momentum will slow upon removal of the Covid-19 boost,” Capital Group said in the report. “Investors see ESG as the future and are in it for the long haul.”
However, nearly half [49 per cent] of the investors surveyed pointed to a lack of robust data as the top barrier to greater adoption of ESG.
There have been initiatives by many stock exchanges in Asia, including Hong Kong, to mandate ESG disclosure, which has led to a rapid increase in data in the region, said Gabriel Wilson-Otto, director of sustainable investing at Fidelity International, speaking at a webinar hosted by the Asian Private Banker on Wednesday.
Hong Kong Exchanges and Clearing (HKEX), which operates the local bourse, requires the filing of annual ESG reports by listed companies. Mandatory disclosure requirements include the board’s approach and principles for evaluating and managing ESG-related risks and opportunities.
“By mandating disclosure, you don’t necessarily get the right information, or change the culture or how an issuer reacts,” said Wilson-Otto. “Even though data has improved, often what we have is policies, not enough actual data to evaluate the numeric performance of a company on a topic. So we have a boiler plate compliance document, [but] we may not have insight into underlying strategic engagement with the underlying issue.”
“Although data has improved and there are some great players, there’s still a lot of gaps and a lot of room for proprietary insight,” he added.
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For the full article, click here: ESG investing is here to stay after Covid-19 but lack of robust data hinders adoption, survey shows | South China Morning Post (scmp.com)
