FOURTEEN of the world’s largest investment companies today launch a ground-breaking report for the United Nations Environment Programme Financial Initiative (UNEP FI). The report “Show Me The Money” confirms the growing importance of environmental, social and governance (ESG) concerns to the global investment industry.
The report states that, there is a growing worldwide understanding of the pivotal role the investment community and capital market actors have to play in addressing critical ESG challenges. At the same time, the mainstream investment community is waking to the burgeoning opportunities associated with sustainability promoting companies, technologies and investment funds. From clean-tech, to renewables and ecosystem services, the growth industries of the 21st century are emerging at an accelerated pace.
The Key Findings are:
- ESG issues are material – there is robust evidence that ESG issues affect shareholder value in both the short and long term.
- The impact of ESG issues on share price can be valued and quantified.
- Key material ESG issues are becoming apparent, and their importance can vary between sectors.
“Show Me The Money” draws on work by a group of leading financial institutions* and covers the impact of qualitative and new risk issues on company value. Industries covered include the auto-industry, aerospace and defense, the media, and the food and beverage industries. UNEP FI is a unique public-private partnership between UNEP and more than 160 banks, insurers and asset managers.
*Participating institutions include: ABN Amro Real Corretora, CM-CIC securities, Deutsche Bank AG/London, Dresdner Kleinwort Wasserstein Securities Limited, Goldman Sachs Global Investment Research, JP Morgan Securities Ltd, Merrill Lynch Global Securities Research & Economics Group, Morgan Stanley & Co. International Limited, UBS Limited and WestL AG.