Socially responsible investment and its impact to your company
– 20th Jul 2009 by Richard Gunawan
Companies that fail to disclose their ESG performance will find it more difficult to obtain funds from institutional investors. Several pension funds, for example, consider climate change a key criterion and will exclude companies that cannot substantiate their environmental commitments.
The absence of a proper management system, policy and review will deter fund managers. Investors are more savvy in their selection of companies that prove a genuine commitment to sustainability issues.