Sustainability Evolved: Adapting Your Business Strategy to an ESG Framework
Sustainability and ESG are sometimes used interchangeably but they aren’t the same thing. Sustainability is a very broad concept that doesn’t point to any specific criteria or actions while ESG is designed to be a practical, umbrella framework for defining a resilient and stakeholder expectation-aligned business. As with the distinction between Corporate Social Responsibility (CSR) and ESG, achieving sustainability is the end goal and ESG is the plan of action. To put it another way, ESG is the set of instructions you use to achieve and measure a sustainable business. Read more
More Considerations for Introducing ESG Options into Plan Lineups
While there are numerous approaches to ESG-investing, consultants and sponsors can’t ignore a fund’s expected returns and the risk involved with those returns (i.e., the pecuniary factors). Jon Hale, head of sustainability research for the Americas with Morningstar, Inc., notes that advisors should keep in mind that “sustainable funds are first and foremost investments that seek to deliver competitive financial performance.” That perspective will influence the review process, he adds: “Their performance record ought to be judged that way, in the same way [and] in the same context that you evaluate other funds.” Read more
Top 50 ESG investments outpace benchmark index Nifty50
Top 50 ESG firms have returned 131 percent since the epidemic began, compared to 117 percent for the Nifty 50, According to data from Acuite ESG Research. TCS, HCL Technologies, Larsen and Toubro, Adani Transmission, Adani Power, Tata Power, and Ambuja Cement were among the ESG elements recognised for their environmental efforts. “ESG is no longer a theoretical concept; it is already a reality, with global investors rewarding complaint borrowers,” stated Sankar Chakraborti, CEO of Acuite ESG Ratings. “Indian businesses have realised the realities, especially during the pandemic. Investors will benefit from ESG, and the topic will gain popularity.Read more
ESG factor increasingly more important for financial advisers building client portfolios, study finds
Investors, not advisers, were shown to be the primary initiators of ESG investment decisions, according to the survey. Investors ranked a company’s reputation as the most essential consideration in selecting a product supplier, which included its investment track record, distribution network, brand name familiarity, and values. It is also vital to realise early, because ESG is also significantly more than simply a filter. ESG can also be, in our experience, a core measure of risk alongside financial risk and managerial risk. For us at La Trobe Financial, ESG principles are an integral part of our day-to-day operations. Read more
