E S or G: What do European investors have to say about it?

European Union - Sep 06 2018

Responses of stakeholders to the question: “What are the sustainability factors that the relevant investment entities should consider?”

On the 24th of May 2018, the EU Commission published the results of the public consultation on Institutional Investors’ and Asset Managers’ Duties regarding sustainability. It was established based on the 191 responses given by a variety of stakeholders (institutional investors, industry associations, private individuals, NGOs…)  domiciled in 14 EU Member States, 3 other European countries, and 5 non-European countries.

This graph displays the 143 public responses to the question: “What are the sustainability factors that the relevant investment entities should consider?” The respondents had to give a gradual answer by ranking the importance of each factor. The result is almost unanimous: 75% of respondents marked all factors as either important or very important. This seems to indicate that ESG factors are widely regarded as a good framework to pilot decision-making. The discrepancies between each factor are marginal, however, the higher dispersion of answers makes climate the most debated factor with 10% of respondents giving it a low or very low importance.

Does this mean that all investors have embraced the ESG approach and are committed to implementation? A few observations should moderate these encouraging results. Firstly, the study aggregates answers from high-level financial institutions with the ones of private individuals or NGOs, it does not represent the financial leverage of each respondent. There may be a motivation bias as well since respondents were free to (or not to) answer knowing their answers would be made public. Answers given by members of the finance industry are slightly different: governance and climate come first while social and other environmental factors receive a lower approval. Finance industry participants also indicate further in the study that fiscal transparency and a larger range of best practice factors are also relevant in many cases. This leads the EU Commission to state that investors should be left with the discretion to choose how they apply ESG factors in their decisions, as the relevance and materiality of these factors can be dynamic and depend on each situation in terms of investment strategy or market.

 

Nathan Breen, Climate Analysis Team – Sources: Beyond Ratings, European Commission

 

 

 

Our latest
publications

Title
Category
Tag
Country
Date
Analyst insight
#Biodiversity #Carbon/Climate Change #Geopolitics
2020-12-05
Analyst insight
#ESG
Global
2020-12-05
Analyst insight
#Carbon #ESG
Global
2020-12-05
Analyst insight
#ESG
Global
2020-12-05
Research note
#ESG
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#ESG
France
2020-12-05
Analyst insight
#Credit Risk #ESG
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change #Environment
Global
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#ESG
France
2020-12-05
Analyst insight
#Carbon
Europe
2020-12-05
Weekly food for thought
#Carbon
Global
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#Credit Risk
United States
2020-12-05
Analyst insight
#Environment
Northern Area
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Europe
2020-12-05
Weekly food for thought
#ESG
France
2020-12-05
Weekly food for thought
#Credit Risk
Peru
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change
World
2020-12-05
Weekly food for thought
#ESG
France
2020-12-05
Weekly food for thought
#Credit Risk #GDP
Europe
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#Credit Risk
France
2020-12-05
Analyst insight
#Credit Risk #France
Europe
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#ESG
Global
2020-12-05
Weekly food for thought
#GDP
Europe
2020-12-05
Analyst insight
#ESG
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#Carbon #ESG
France
2020-12-05
Weekly food for thought
#Credit Risk
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#ESG
Europe, USA
2020-12-05
Weekly food for thought
#GDP
France
2020-12-05
Analyst insight
#Environment
France
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2020-12-05
Weekly food for thought
#Credit Risk #GDP
China
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#ESG
USA
2020-12-05
Weekly food for thought
#GDP
Global
2020-12-05
Analyst insight
#Credit Risk #Sovereign Debt
Global
2020-12-05
Weekly food for thought
#Carbon #Climate #IPCC #WMO
Global
2020-12-05
Weekly food for thought
#Carbon #Inequality #Paris Agreement
France
2020-12-05
Weekly food for thought
#GDP #Sovereign Debt
Italy
2020-12-05
Analyst insight
#Credit Risk #GDP #Geopolitics #Sovereign Debt
Global
2020-12-05
Weekly food for thought
#Environment
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP
Global
2020-12-05
Weekly food for thought
#GDP
France
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Environment
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Environment
Global
2020-12-05
Analyst insight
#GDP
Brasil
2020-12-05
Weekly food for thought
#Environment
Venezuela
2020-12-05
Weekly food for thought
#Environment #Natural Capital
Norway
2020-12-05
Analyst insight
#Carbon #Carbon/Climate Change #Climate
United Kingdom
2020-12-05
Weekly food for thought
#Agriculture #Biodiversity #Climate #GHG #Greenhouse gases
Global
2020-12-05
Weekly food for thought
#Biodiversity #Climate #Environment #ESG #IPCC #Oceans #SIDS
Global
2020-12-05
Weekly food for thought
#Credit Risk #GDP
France
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Europe
2020-12-05
Weekly food for thought
#Carbon/Climate Change
France, Canada
2020-12-05
Weekly food for thought
#Credit Risk #GDP
Argentina
2020-12-05
Analyst insight
France, Egypt
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
France
2020-12-05
Weekly food for thought
#GDP #Sovereign Debt
Germany
2020-12-05
Weekly food for thought
#Environment #ESG
Global
2020-12-05
Analyst insight
#GDP #Natural Capital #Sovereign Debt
South Africa, France
2020-12-05
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change #Environment #ESG
Global
2020-12-05
Weekly food for thought
#Carbon/Climate Change #Climate
Global
2020-12-05
Weekly food for thought
#ESG
India
2020-12-05
Weekly food for thought
#Credit Risk #GDP
USA, Japan, European Union
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #GDP #Paris Agreement #Sovereign Debt
Global
2020-12-05
Weekly food for thought
#Climate #Environment #Paris Agreement
Small Island Developing States, Global, Barbados, Fiji
2020-12-05
Weekly food for thought
#Credit Risk #GDP #Sovereign Debt
Venezuela
2020-12-05
Analyst insight
#Carbon #Carbon/Climate Change #Climate #Credit Risk
Global
2020-12-05
Analyst insight
Global
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate
Global
2020-12-05
Weekly food for thought
#Credit Risk #GDP
Global
2020-12-05
Analyst insight
#Biodiversity #Environment #Natural Capital
Brazil
2020-12-05
Weekly food for thought
#Credit Risk #Sovereign Debt
United States
2020-12-05
Weekly food for thought
#Carbon/Climate Change
Global
2020-12-05
Analyst insight
#Credit Risk #Sovereign Debt
United States
2020-12-05
Analyst insight
#Carbon/Climate Change #Credit Risk #ESG #Natural Capital
Global
2020-12-05
Analyst insight
#Carbon #Carbon/Climate Change
Europe
2020-12-05
Weekly food for thought
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
France
2020-12-05
Weekly food for thought
#Credit Risk #Sovereign Debt
Europe
2020-12-05
Weekly food for thought
Global
2020-12-05
Analyst insight
Global
2020-12-05
Weekly food for thought
France
2020-12-05
Weekly food for thought
#Carbon/Climate Change #ESG
Global
2020-12-05
Weekly food for thought
Global
2020-12-05
Weekly food for thought
Global
2020-12-05
Weekly food for thought
Global
2020-12-05
Analyst insight
#Biodiversity #Climate #Environment #Natural Capital #Paris Agreement
Global
2020-12-05
Weekly food for thought
United States
2020-12-05
Weekly food for thought
Italy
2020-12-05
Weekly food for thought
Global
2020-12-05
Analyst insight
Middle East & North Africa
2020-12-05
Weekly food for thought
Global
2020-12-05
Weekly food for thought
Global
2020-12-05
Research note
#Carbon #Carbon/Climate Change #Climate #Paris Agreement
Global
2020-12-05
Weekly food for thought
Global
2020-12-05
Analyst insight
All
2020-12-05
Weekly food for thought
United States
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
#Carbon/Climate Change #Climate #Credit Risk
England
2020-12-05
Weekly food for thought
Global
2020-12-05
Weekly food for thought
Germany
2020-12-05
Analyst insight
Brazil
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Italia
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Canada
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Analyst insight
Sweden
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Italia
2020-12-05
Analyst insight
All
2020-12-05
Weekly food for thought
USA
2020-12-05
Analyst insight
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
United Kingdom
2020-12-05
Weekly food for thought
United Kingdom
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Research note
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Russia
2020-12-05
Analyst insight
Argentina
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
European Union
2020-12-05
Analyst insight
European Union
2020-12-05
Analyst insight
Greece
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
European Union
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Cuba
2020-12-05
Weekly food for thought
All
2020-12-05
Analyst insight
Greece
2020-12-05
Weekly food for thought
European Union
2020-12-05
Weekly food for thought
French Guyana
2020-12-05
Weekly food for thought
#Sovereign Debt
Russia
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
Venezuela
2020-12-05
Analyst insight
All
2020-12-05
Weekly food for thought
United Kingdom
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
France
2020-12-05
Weekly food for thought
European Union
2020-12-05
Weekly food for thought
All
2020-12-05
Weekly food for thought
France
2020-12-05

Let's keep in touch!

The email is required
Invalid email
The firstname is required
Invalid firstname
The lastname is required
Invalid lastname

Register to our newsletter to be the first to hear about ...

By submitting this form, you consent to receiving email communications from FTSE Russell and the London Stock Exchange Group of companies (together, “LSEG”). LSEG will update your email preferences and hold your details in its contact database which can be accessed by LSEG group companies. For more information on how LSEG uses your data, see our Privacy Policy. For more information about LSEG group companies, see LSEG.com.

Get started

More investors are choosing Beyond Ratings' proprietary ESG-augmented financial metrics to gain a 360° view of company and country ESG performance.