The dramatic shift towards ESG investing will not be sustained unless we address a fundamental weakness in the market infrastructure: the system for providing data to investors to make ESG investment decisions is inadequate to support the ongoing needs of issuers and investors in its breadth, depth and quality.
In addition to the well-documented growth in investor demand for ESG investment options, it is also important to note many companies throughout the world are now spending resources, making merger and acquisition decisions and adjusting product offerings in order to address operational environmental and social risk factors. Investors need reliable systems to provide transparency to the efficacy of these resource allocation decisions and management strategies.
To read the full article, click here for the January issue of the ESG Clarity digital magazine
