Institutional investors are now under growing pressure from governments and regulators to report on ESG. In turn quoted companies are being urged to provide data. With the Task Force on Climate Disclosures (TCFD) soon to be a universal reporting standard, Sustainable Finance Disclosure Regulation (SFDR) coming into account in March 2021 (although it is a European regulation, any funds sold into the EU will need to follow it, so it will inevitably ripple into the UK market) and the Stewardship Code upping the pressure on asset owners and managers to avoid greenwashing; companies need to start exploring ESG reporting as soon as possible. Companies that take their ESG reporting seriously stand to benefit.
For those that don’t, its’ not merely a matter of cost of capital anymore – there’s a real prospect of the loss of access to significant pools of capital in the medium to long term. Reporting on ESG performance and improvements signifies to investors that risks can be mitigated and there is an ability to generate sustainable long-term financial returns.
- Oli Barrett MBE
- Sam Smith, CEO, finnCap Group Plc
- Raymond Greaves, Head of Research, finnCap
- Manjula Lee, Founder and CEO, World Wide Generation
- Alexander Rhodes, Head of Purpose, Mishcon de Reya
- Peter Michaelis, Head of Sustainable Investment, Liontrust Asset Management