The widespread proliferation of environmental, social and governance investments will require global data standards and regulations to further progress.
According to the Organisation for Economic Co-operation and Development’s latest 2020 business and finance outlook report, Sustainable and Resilient Finance, ESG scoring and reporting has the potential to unlock a significant amount of information on the management and resilience of companies, but it will require agreed global data standards and regulations, Forbes reports.
While over $30 trillion has flowed into sustainable investments in some form of ESG investing, over 25% of publicly listed companies around the world are ESG measured and rated, with most companies in the U.S.
The OECD’s analysis underscores the distribution of performance in ESG ratings by different Providers for the same companies across all sectors.
“The use of ESG analysis is fast becoming one of the main tools for investors to manage all kinds of non-financial risks,