Amplifying the "S" in ESG: Investor Myth Buster

ABOUT THE ESG WORKING GROUP

Investors are under increased pressure to consider the “S” (social) performance component in their investments. Yet, in the world of Environmental, Social and Governance (ESG) investing, the integration of social performance assessment has seen insufficient progress.

The Group, comprising Refinitiv, International Sustainable Finance Centre (ISFC), White & Case, Eco-Age, The Mekong Club, and the Principles for Responsible Investment (PRI) and Robert F Kennedy Human Rights, (as observer participants), believe in amplifying the work around social performance as a key consideration for investors, beginning with the publication of this white paper, and agree that there is a need for broader and more urgent action globally.

ABOUT THE WHITE PAPER

ESG investing is plagued by many challenges and misperceptions about why social issues – such as a company’s labour practices or community relations – matter and how or whether they can be integrated into investment analysis.

For all investors, it is important to proactively address these questions because, as the Working Group highlights, social issues can create key risks; they are salient and will be increasingly relevant. Debunking myths around the availability of data on “S” issues and their importance can also help identify more resilient and profitable investment opportunities.

Together, the Group produced a white paper: “Amplifying the “S” in the ESG: Investor Myth Buster”, to help create a greater momentum for both improving an understanding of the “S” issues, and encourage a wider adoption of social criteria in investment strategies.