PwC research highlights investor demand for ESG reporting
Environmental, social and governance (ESG) factors are increasingly driving investment strategies, and “ESG has now become a make-or-break consideration for leading investors globally,” says PwC. In its 2021 Global Investor ESG Survey, 49% of participating investors expressed willingness to divest from companies that are not taking sufficient action on ESG issues.
“Investors increasingly want to hear more from companies about their ESG-related commitments,” says PwC, with 83% saying it is important that ESG reporting provide detailed information about progress toward ESG goals. Confidence in current ESG reporting is low, and the survey highlights the important role of independent assurance: 79% of respondents said they place more trust in ESG information that has been assured.
The survey results also emphasise the valuable role for the new International Sustainability Standards Board. Nearly three-quarters of investors (74%) said their decision-making would be better informed if companies applied a single set of ESG reporting standards, and a similar number (73%) believe it is important to be able to compare ESG performance across companies. Says Emma Cox, Global Climate Leader at PwC UK: “Ultimately, our research shows that to meet the demands of investors, companies need to take their ESG-related performance as seriously as they do all of their business and financial metrics.”
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