Regulatory Issues cause of 79% ESG Portfolios going to EU

As the industry grows, there will be challenges. Most of the challenges come from defining quantitative data. What is to be measured, and how do we measure it? ESG has been around for some time, and therefore has a track record. But the demand for accountability on so many levels is causing a logjam.

Governments are not moving quickly enough to change legislation which is creating opportunity to fund in other countries to gain a competitive advantage. This will be the push and pull, under great pressure from industry for some time. Do your homework and don’t blink, because things are changing fast. There will be winners and leass winners, but hopefully we will gain as the markets adjust to the new reality.

Respondents say the major challenge they face is a lack of transparency Asset managers’ primary motivation for ESG integration is client demand, but the quality of public data poses challenges, according to an Index Industry Association (IIA) report.

The report showcases that 85 percent of respondents say ESG plays a vital role in their firm’s overall investment offering/strategy. The report is based a survey of 300 respondents at asset management firms in the US, the UK, France and Germany. It finds that around 50 percent of respondents in the US and Germany consider ESG a very high priority.

Respondents say the major challenge they face in terms of ESG is the lack of transparency/greater public corporate disclosure of companies’ ESG activities. In addition, 35 percent of respondents outline a lack of quantitative data as a ‘moderate challenge’.

Incorporating ESG information into investment decisions is far more popular in Europe than in the US. The report authors state: ‘The lion’s share of ESG funds (79 percent) still goes to European portfolios, with the US lagging some way behind with a share of just under 12 percent.’ This is a governance issue that will affect non-european businesses who are looking for investment, until the rest of the western world wakes up.

Asked why this is the case, respondents point to regulatory or legal uncertainty (45 percent), lack of end-investor interest (45 percent) and access to right-sized ESG products (43 percent).

This a simple game of catch-up. North America is moving more slowly that the European Union when it comes to corporate responsibility. More than 60 percent of Americans agree investment funds should consider sustainability factors. Yet only 15 per cent say they put money in sustainably themed investments. According to some, there needs to be general government support, a favourable regulatory environment and leadership at the fund level before we see large scale movement. It will be a challenge to the United States to step up and implement real strategies aimed at creating equity for all, preserving the environment and changing the priorities of their companies. But if there is a profit in that kind of change, we know that America will rise to the occasion, if only a little late to the party. Their current government is already taking steps forward, (PwC ESG survey), so we may see a shift showing signs of becoming a trend, which is good news for ESG investors.

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What is ESG for Companies in Vancouver,BC?

ESG has been around for decades. Recent events have accelerated the need for businesses to make changes.  Environment, Social and Governance may well determine your future success, or failure. Whether you have business in Vancouver or anywhere else.

The term ESG investing was first coined in 2004. It was a part of a study by the UN Global Compact. ESG stands for environmental, social and governance, the 3 cornerstone indicators for investors. The report proposed that “Who Cares Wins.” In 2005, the UN Principles for Responsible Investment, or (UN PRI). The report detailed a plan for investment designed to make life fairer for all and save the planet.

Do ESG Investment Principles Matter in Vancouver?

E, S & G are 3 pillars of ethics measurement for a business or enterprise. They are factors which are driving investor decisions around the world. ESG criteria measure non-financial features which determine how attractive you are for investment. A low ESG score may prevent a company from getting a sustainability score. A low sustainability score will most likely prevent any relevant confidence by investors.

If you have a business in Vancouver, then you will want to read further. If you are looking for investment or want to list on an Exchange, then you will want to examine your portfolio. You will need to establish a Score for potential ESG compliance issues.

What is CSR for Companies in Vancouver?

CSR stands for Corporate Social Responsibility. It is a measurement of a company’s ethical impact on the society it serves. This can include positive impacts like philanthropic endeavours or negative impacts like pollution. It is a report which shows a company’s contributions to the greater community of Vancouver.

The CSR Policy should cover many core elements with regular reporting. These include care for all stakeholders and ethical functioning. There should be a section on respect for Workers’ Rights and Welfare and Human Rights. It should detail all aspects which show respect for Environment.  Finally, the report should include activities for Social and Inclusive Development.

What is DEI for Business in British Columbia

The world has changed and smart companies are changing within it. Diversity, equity and inclusion are terms which are a part of your ESG. Many companies implement these strategies through governance. With the direct effects will be seen in social and environmental actions. They are programs which encourage the participation of diverse groups of people.

Workplace diversity includes people of different genders, races and ethnicities. It also includes abilities and disabilities, religion, culture, age and sexual orientations. socioeconomic status, language or political perspective. The goal is to create more inclusive working environments for everyone.

A good outline for a Diversity, Equity and Inclusion plan will include a DEI Strategic Plan. It will also include a leadership commitment to the plan. It will address the recruitment and hiring of diverse talent. This could include neurodiverse candidates. It will require reporting on inclusive performance management. It will detail equitable and inclusive culture. The report will conclude with highlights listing the effects on the marketplace. It will also outline community impact. There is an increasing demand for reporting for companies in Vancouver, the Island and around the world