The attention on sustainability issues and ESG disclosures has pushed forward policy actions, but global consistency remains out of reach.
The attention on sustainability issues and ESG disclosures has pushed forward policies aimed at both corporations in all sectors and financial institutions that influence the global allocation of capital. But many buy-side firms and other stakeholders find these policies to be incomplete; many policies are voluntary and have come in the form of guidance. The fragmented approach to ESG standards and the many organizations influencing the process also make it more difficult to achieve global consistency.
“Reliance on ESG ratings is growing, and as result, 67% of respondents believe that lawmakers and regulators should place a high level of prioritization around overseeing third-party ESG rating agencies,” says Aite-Novarica Group Strategic Advisor Paul Sinthunont.
This report is the first in a series that focuses on the many aspects of ESG and sustainability issues facing the investment management industry. It highlights and examines these developments and trends in various jurisdictions, and provides analysis on the opinions expressed by the buy-side. It is based on Aite-Novarica Group’s survey and interviews conducted between March 2021 and June 2021 with buy-side market participants. In total, Aite-Novarica Group interviewed 55 individuals to capture their views on the ESG regulatory landscape, market challenges, and drivers toward standards for reporting.