The growing intersection of current trends on Passive, Factor and Sustainability driven investing makes a vital contribution to the ability of investors to develop policies along Environmental, Social and Governance (ESG) objectives.
While the interest in ESG factors among mainstream investors is growing, there is often confusion about how they incorporate these metrics into their analysis and investment decisions. At the same time, companies are asked to provide a wealth of ESG data, either in their public reporting or to specialist ESG rating providers. But what ESG information is crucial and material to both investors and investees?
Rachel Alembakis, publisher of The Sustainability Report, recently moderated a panel discussion covering these questions, sponsored by S&P Dow Jones Indices in association with the Australasian Investor Relations Association (AIRA).
The discussion was opened by Michael Orzano, Head of Equity Indices at S&P Dow Jones Indices, followed by a presentation on trends in ESG investment by Martina Macpherson, Global Head of ESG Indices, Product Management at S&P Dow Jones Indices.
A panel of experts then analysed important issues for investors and companies, including the value of gender diversity, the impact of the Sustainable Development Goals, and the value of engagement with internal and external stakeholders. The panel included:
Yolanda Beattie, Diversity and Inclusion Practice Leader, Mercer
Terence Jeyaretnam, Partner, Climate Change and Sustainability Services Ernst & Young
Martina Macpherson, Global Head of ESG Indices, Product Management, S&P Dow Jones Indices
The panel was closed by AIRA Immediate Past Chairman Warwick Bryan.