How ESG Drives Investment Decisions

Last month, the Ipreo Blog published a special report on the pros and cons of sustainability reporting. It’s clear that such metrics are becoming a more significant, and more visible, part of the investment ecosystem. But how significant are they to the buy-side community?

Ipreo frequently partners with clients to develop actionable strategies to positively differentiate their Sustainability efforts and enhance their communication and engagement around environmental, social and corporate governance, regardless if they are launching or aiming to enhance their Sustainability programs.

In order to shed light on the evolving landscape of ESG integration on the buy side, Ipreo’s Perception Analytics team recently held in-depth interviews with over 70 investment professionals across 15 countries, at firms that manage almost $2.4T in equity assets.

We reached out to these investors to gather insight on how they incorporate ESG factors into investment decision-making, what resources they rely on for ESG research, and the role that IR should play in Sustainability communications.

Excerpt:

Participants highlight the importance of connecting ESG factors to business fundamentals in order to illustrate the tangible impact of Sustainability on financial outlook and valuation. IR is expected to play a significant role in bridging the link between ESG, financial performance, and investment attractiveness.

Read the Ipreo Special Report: How ESG Drives Investment Decisions