Thomson Reuters just compiled a report covering buy-side perceptions of Environmental, Social, and Governance Factors when investing in companies.
• Eighty-four percent of participants evaluate ESG criteria to some degree when making an investment decision.
• Twenty-four percent of the respondents focus on corporate governance as opposed to all ESG issues equally.
• Only 16% do not consider ESG principles at all in their investment criteria.
While a majority of the participants say it is a low or moderate consideration when investing, many investors are beginning to incorporate ESG principles into their investment process as a measurement for the overall quality of management, their credibility, transparency, and communication strategy. Increasingly, investors are considering sustainability reports, corporate governance ratings, carbon disclosure, geopolitical issues, labor standards and other social and environmental practices.