𝗧𝗵𝗲 𝗳𝗼𝗹𝗹𝗼𝘄𝗶𝗻𝗴 𝗶𝘀 𝗮 𝘄𝗿𝗶𝘁𝗲-𝘂𝗽 𝗯𝘆 𝗜𝗻𝘁𝗲𝗴𝗿𝘂𝗺 𝗘𝗦𝗚 𝗮𝗻𝗮𝗹𝘆𝘀𝘁 𝗠𝗼𝗹𝗹𝘆 𝗙𝗿𝗮𝘇𝗲𝗿 𝗮𝗳𝘁𝗲𝗿 𝗵𝗮𝘃𝗶𝗻𝗴 𝗮𝘁𝘁𝗲𝗻𝗱𝗲𝗱 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹’𝘀 𝗘𝗦𝗚 𝗖𝗹𝘂𝗯 𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗼𝗻 𝟭𝟯 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝟮𝟬𝟮𝟯. 𝗧𝗵𝗶𝘀 𝘄𝗮𝘀 𝗮𝗻 𝗲𝘃𝗲𝗻𝘁 𝗮𝘁𝘁𝗲𝗻𝗱𝗲𝗱 𝗯𝘆 𝗺𝗮𝗻𝘆 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗳𝗶𝗴𝘂𝗿𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗨𝗞 & 𝗘𝗨 𝗔𝘀𝘀𝗲𝘁 𝗢𝘄𝗻𝗲𝗿 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆, 𝘄𝗵𝗲𝗿𝗲 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗲𝗻𝗴𝗮𝗴𝗲𝗱 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗿𝗲𝗱𝘂𝗰𝗲 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱’𝘀 𝗿𝗲𝗹𝗶𝗮𝗻𝗰𝗲 𝗼𝗻 𝗳𝗼𝘀𝘀𝗶𝗹 𝗳𝘂𝗲𝗹𝘀, 𝗽𝗿𝗼𝘁𝗲𝗰𝘁 𝘁𝗵𝗲 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺, 𝗮𝗻𝗱 𝗽𝗿𝗼𝗺𝗼𝘁𝗲 𝗴𝗿𝗲𝗮𝘁𝗲𝗿 𝗲𝗾𝘂𝗮𝗹𝗶𝘁𝘆.

“𝙃𝙤𝙬 𝙘𝙖𝙣 𝙥𝙚𝙤𝙥𝙡𝙚 𝙩𝙧𝙪𝙨𝙩 𝙀𝙎𝙂 𝙧𝙖𝙩𝙞𝙣𝙜𝙨 𝙩𝙝𝙚𝙮 𝙙𝙤𝙣’𝙩 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙?”

During the event, our CEO Shai participated in a panel discussion focused on the question of whether investors can place trust in ESG ratings and take them seriously. 

One of the many questions he raised was why are people taking ESG ratings which they don’t understandseriously?

Investors need to see the underlying data behind these ratings to explain the scores. Transparency around methodology and reason for score should therefore be a key priority for EGS ratings providers.  

𝙉𝙚𝙩 𝙯𝙚𝙧𝙤, 𝘽𝙞𝙤𝙙𝙞𝙫𝙚𝙧𝙨𝙞𝙩𝙮 & 𝙩𝙝𝙚 ‘𝙎’ 𝙞𝙣 𝙀𝙎𝙂

The other three panel discussions also provided many invaluable insights, including but not limited to:

♳ On the discussion of transition assets and the net zero pathway, it was emphasised that public markets are not going to be able to solve the issue on their own, emphasising the need for clear, uniform regulation to drive progress in this area.

♴ There is no silver bullet when it comes to measuring biodiversity loss; but we do not need perfection in data to start trying to reverse biodiversity loss.

♵ While in environmental issues we can think about ‘offsets’ to counter poor behaviour in one area, this cannot be the same for social issues. Providing a universal living wage for your employees does not negate the poor treatment of a company’s tier 2 supplier workforce.  

𝘼𝙘𝙩𝙞𝙤𝙣 𝙥𝙤𝙞𝙣𝙩𝙨 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚

The conference revealed a path forward in ESG investing; transparency, collaboration, and holistic approaches. Imperfect data shouldn’t hinder action on pressing environmental and social challenges.

Asset owners and managers alike have the capacity and responsibility to shape a more sustainable and equitable future – act now!

𝗪𝗮𝗻𝘁 𝘁𝗼 𝗿𝗲𝗮𝗱 𝗺𝗼𝗿𝗲?

This is just a brief summary - read the full write up on City AM :

https://www.cityam.com/trustees-relying-on-a-headline-esg-rating-are-at-risk-pi-esg-club-conference-2023-recap/

Want to share your thoughts? Email us via contact@integrumesg.com or fill in this form HERE to book in a demonstration on our own approach to ESG analysis.