Investors target sustainability

3rd July 2014


Related Topics

Related tags

  • Reporting ,
  • Management ,
  • Corporate governance

Author

Laura Duggan

Investors are increasingly considering sustainability issues in their decisions, according to research by PwC. However, many investors outside Europe are not happy with the quality of corporate reporting on sustainability.

A survey of a diverse range of institutional investors, representing more than US$7.6 trillion in total assets under management (AUM), found that four investors in five had considered sustainability issues in one or more investment contexts in the past year. And 85% expected to do so three years from now.

Most investors considering sustainability did so when they were voting proxies and deciding whether to engage directly with a portfolio company about a subject of concern. Very largeinvestors – those with AUM of more than US$100 billion – were most likely to incorporate sustainability issues into their investment strategies.

PwC’s research found that, in the past 12 months, 82% of respondents had considered climate change and/or resource scarcity in future investment decisions, while 79% took into account social responsibility and/or good citizenship. Most investors who identified sustainability issues as relevant said it was “very likely” they would communicate with their portfolio companies about this topic in the next 12 months.

Risk mitigation is the main reason investors are looking at sustainability, with nearly three-quarters (73%) identifying this as their primary driver.

Enhancing performance returns (52%) and avoiding firms with unethical conduct (55%) are other key drivers. Investors were generally dissatisfied with companies’ current sustainability reporting, as well as the lack of common standards to assess the materiality of environmental or social issues.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

Multinational corporations are undermining their net-zero commitments with excessive air travel and no plans to reduce ‘the low hanging fruit’ of carbon footprints, a study by Transport & Environment has found.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

Large businesses across the world are avoiding climate action due to fear they will be called out for getting their work wrong, according to a new Carbon Trust report.

29th February 2024

Read more

A thought-provoking discussion on how storytelling can change the world took place in Central London last night, alongside an exclusive sneak preview of an upcoming IEMA film series.

29th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close