Understanding ESG Issues Can Lead To Better Investment Decisions - Survey

Robbie Lawther Reporter 23 June 2017

Understanding ESG Issues Can Lead To Better Investment Decisions - Survey

First State surveyed its employees on ESG issues to understand their believes on the investment field.

The majority of a global investment firm's employees believe considering environmental, social and governance issues leads to more complete analysis and better informed investment decisions.

First State Investments published a report called 10th Responsible Investment & Stewardship Report. The firm surveyed its staff for the report on their investment beliefs relating to sustainability and ESG, in a bid to drive the firm’s development of future principles, policies and investment strategies in the sector.

The firm asked its employees globally on the materiality of ESG factors, the degree to which they can contribute to superior long-term performance and the wider societal purpose of investment management. 

Around 80 per cent believe that considering ESG issues leads to better analysis and investment decisions. 

Impact investing has been gaining momentum over the past few months, as more Millennials have started to become wealth holders and seek to invest in firms that do their part for society and the environment.

The report also found that nine-in-ten employees believed that effective stewardship can positively influence behaviour and returns.

“First State Investments has put responsible investment and stewardship at the heart of our business, and it is pleasing to see that staff across our organisation are highly engaged and see it as intrinsic to our business culture and long-term success,” said Mark Lazberger, chief executive officer. “The feedback and insights we have received from our staff as well as from our clients are instrumental in ensuring we continue to challenge ourselves and further improve our business.”

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