Investors are taking notice: ESG information is growing in importance for their investment analysis and decision making. Here’s what we learnt about how they are thinking about the economic realities of ESG.
According to 325 investors worldwide, the majority of which were self-identified active asset managers making investments for the long term, ESG – after being a topic of conversation for years – is gaining even more traction.
Our survey highlighted a number of deficiencies in current ESG reporting. Simply put, much of today’s ESG reporting lacks relevant, timely, complete and comparable information – such that stakeholders cannot easily differentiate between companies on ESG-related performance – making capital allocation decisions difficult for all in the ecosystem. The clear message: the time for a single set of globally aligned non-financial reporting standards is here.
Investors said they want to engage with companies on their ESG journey, but in the absence of real action and transparent communication through reporting, they will take action too – using their power to vote and, if necessary, selling their investment and walking away.
About the survey
PwC’s 2021 Global investor survey on ESG was based on an online survey of 325 investment professionals across 43 territories and 40 in-depth interviews with investors and analysts in 11 territories representing combined assets under management (AUM) of more than US$14 trillion.