What is Driving the ESG Boom?
Key Global Challenges and Drivers
Global Challenges
A sustainable company is one that is managed in such a way that is positioned for long term financial success while accounting for all stakeholders’ interests. ESG data are the means that can enable an investor to quantify a company’s strategy, corporate purpose and management quality.
There are various reasons why ESG is increasingly becoming an imperative for companies across the globe. The world is changing, and companies need to change with it in order to deal with the resulting challenges and ensure sustainability.
What is Driving the ESG Boom?
Interest in environmental, social and governance-oriented investing has soared lately. ESG investing grew to more than USD 30 trillion in 2018, according to the Global Sustainable Investment Alliance, and that number is set to keep rising as consumer tastes shift and investors demand more transparency.
According to recent analysis by EPFR, there is now a noticeable impact on some stock prices, and ESG-focused equity funds have taken in nearly USD 70bn of assets over the past year, while traditional equity funds have suffered almost $200bn of outflows over the same period.