The ESG game changer

Adoption of ESG standards by institutional investors is now filtering down to fund boards. Managers have to meet investors’ ESG requirements. This has huge consequences for director selection.

The speed at which ESG has taken off, and the affect that it is having across the global investment industry, is extraordinary. In many respects it is surprising that it has taken this long for ESG to have become any sort of an influence in fund board selection.

First, for those that are not familiar with ESG, some background. ESG (environment, social and governance) factors are playing an ever-larger part in the decision-making process by investors, especially by pension funds. ESG is also important for many younger, socially and environmentally conscious retail investors.

To read more on this story see the October 2019 issue of The NED.