New research from E3G reveals a third of investor signatories to the UN Principles for Responsible Investment do not employ ESG investment specialists
A third of investors committed to adopting greener, more sustainable investment strategies are failing to employ the experts that are likely to be needed to deliver promised reforms, according to new research released today by the think tank E3G.
Some 33 per cent of investors signed up to the UN Principles of Responsible Investment (PRI) – a set of voluntary investment principles promoting the adoption of environmental, social and governance (ESG) considerations in investment decisions – do not employ a single ESG investment specialists, the think tank reported.
A further 20 per cent of firms only employ one such expert – leaving more than 500 leading investment companies managing $6.9tr in assets with little to no professional guidance on how to shift to more responsible investment models.
E3G warns the lack of specialist advice risks endangering not only the health of the planet but also the stability and resilience of the global economic system, which could suffer serious disruption if investors are not prepared for the low-carbon transition.
“If these companies do not have the capacity to assess climate change risk they are not only putting their own companies at risk, they are locking in investment in a high carbon future that has the potential to cause a global economic crash,” Ingrid Holmes, director of E3G, warned in a statement. “These investors are at the heart of the solution to avoiding dangerous climate change. Climate change is a global emergency and the investment community must now act accordingly.”