Luxembourg, 28 June 2022 (TDI): European asset managers take measures to stop the distribution of such products that do not comply with the Environment, Social, and Governance (ESG) standards.
As ESG issues are becoming more serious, investment companies are playing an important role in the global control of ESG risks.
Generally, investment companies show their sustainability reports where required because it helps them to solve and control ESG problems.
PWC Global investor 2021 survey shows that 79% of the respondents agreed to put more trust and confidence in ESG information provided by financial experts.
James Chalmers, Global assurance leader at PWC, UK said that the response and action of investment companies on ESG are very important to follow.
PWC survey further shows that investors will support the program but companies must ensure their commitment and take action on ESG.
Moreover, United State Security Exchange Commission (US SEC) also agrees and is willing to take action and follow proper guidelines on ESG requirements.
Similarly, United State Security Exchange Commission considers ESG issues as a global phenomenon because investors on a global scale need to prioritize and manage it.
Financial services market leader Olivier Carre at PWC said “As regional regulations become increasingly stringent and as efforts towards the development of global ESG standards intensify, Managers – especially those willing to compete at a global level – will be pushed towards an all-encompassing alignment of their products and operations with ESG.”
Environment, Social, and Governance
The investment takes into account the environment, social, and governance factors in the decision-making process of investment and finance.
The three main objectives in making an ESG strategy are integration, values, and impact.
The Common approaches in the strategy include the bottom-up ESG integration, the top-down integration, best-in-class selection, and active ownership. However, all of the above approaches include risks and challenges to gaining long-term revenues.
