What would it take for companies and investors to see eye to eye?
That was the challenge identified for the recent GreenBiz
19 conference. Those present were tasked with assessing “what it would take to align corporate reporting with investor needs in order to accelerate investments in sustainable and low-carbon solutions.”Those present were all executives from varying positions in the financial industry.They took at hard look at corporate reporting on ESG factors and noted that it continues to move from the fringe to the mainstream.Related: Does the Morningstar Quantitative Rating Work?
Related: 3 Impact Investing, ESG & SRI Predictions for 2019
When ESG factors were initially introduced they were largely ignored or pushed to the periphery. As the years have passed they’ve grown increasingly important to investors.One of the biggest frustrations reported by investors was the feeling that ESG reporting was more of a “checkbox” activity rather than a true drive to make sustainability enhancements.Investors don’t see companies improving on incorporating ESG metrics into their performance indicators.It seems there may be a long road ahead to get to where investors and companies are seeing eye to eye but things are improving albeit slowly.Learn more about the conference and findings