ESG's by Stock Exchanges - A Big Picture
Published On: January 06, 2021
Commodity Update - December 2020
Sustainability challenges exist globally, such as flood risk, melting glaciers resulting in accelerated sea-level rise, frequent wildfires, rising temperatures, longer drought periods. Apart from this, there are other social issues corruption crackdown, tax transparency, governance reform, privacy and data security risks, labour practices, business ethics with regulatory risks varying from region to region. To address all these issues, investors and shareholders look to Environmental, Social, and Governance (ESG) reporting as a door to the future. ESG analysis and reporting have received increasing interest from investment professionals such as banks, investment companies, and high-net-worth investors. According to Sustainalytics, the Principles for Responsible Investment has grown from 63 signatories with USD 6.5 trillion in assets under management in 2006 to more than 3000 signatories with over USD 103 trillion in assets under management in 2020 (Sustainalytics, 2020). All of these 3000 signatories have pledged to incorporate ESG issues into investment decision-making processes.